Question

Flounder Corporation has recorded the following costs for Job #101: Total Cost: $2400 Direct Materials: $900 Direct Labor: $700 What is the amount of manufacturing overhead cost for Job #101?

1) $2400
2) $3200
3) $800
4) $4000

Answer 1

The manufacturing overhead cost for Job #101 is calculated by subtracting the sum of Direct Materials and Direct Labor from the Total Cost. The result is $800, making option 3 the correct answer.

Step-by-step explanation:

The student's question relates to calculating the manufacturing overhead cost for Job #101 based on the costs provided. To find the manufacturing overhead, we need to subtract the sum of Direct Materials and Direct Labor costs from the Total Cost. We are given:

• Total Cost: $2,400
• Direct Materials: $900
• Direct Labor: $700

The manufacturing overhead can be calculated as follows:
$2,400 Total Cost - ($900 Direct Materials + $700 Direct Labor) = $800 Manufacturing Overhead

Therefore, the manufacturing overhead cost for Job #101 is $800, which corresponds to option 3 in the question.

Answer 2

The manufacturing overhead cost for Job #101 is $800, calculated by subtracting the sum of direct materials and direct labor from the total cost.

Step-by-step explanation:

To find the manufacturing overhead cost for Job #101, we need to subtract the direct costs (– the direct materials and direct labor) from the total cost of the job. Given the direct materials cost is $900 and direct labor is $700, we calculate the overhead by subtracting these from the total cost of $2400. So the manufacturing overhead cost would be $2400 – ($900 + $700) = $2400 – $1600 = $800.

The correct answer to the question is option 3) $800.