Question

During August, Sky's the Limit worked on Job X-10 for one of its regular customers. The following information is related to Job X-10: Beginning balance $1,500, Materials requisitioned $5,000, Direct labor cost $3,500. Overhead is assigned at the rate of 50% of direct labor cost. From the provided information, calculate the total cost of Job X-10?

Answer 1

The total cost of Job X-10 is calculated by adding the beginning balance, materials requisitioned, direct labor cost, and overhead (which is 50% of labor cost). The total cost comes to $11,750.

Step-by-step explanation:

To calculate the total cost of Job X-10, you must first sum the beginning balance, the cost of materials requisitioned, the direct labor cost, and the overhead. The overhead is calculated as 50% of direct labor cost. Here are the detailed computations:

1. Begin with the beginning balance: $1,500
2. Add the cost of materials requisitioned: $5,000
3. Add the direct labor cost: $3,500
4. Calculate the overhead, which is 50% of the direct labor cost: 0.50 × $3,500 = $1,750
5. Sum all the above figures to find the total cost of Job X-10: $1,500 + $5,000 + $3,500 + $1,750 = $11,750

The total cost of Job X-10 is $11,750.