Question

Sky's the Limit produces a variety of niche products for specific clients. 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:

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.
$11,750
$10,850
$12,000
$12,125

Answer 1

To calculate the total cost of Job X-10, add the materials cost, direct labor cost, and overhead cost. The overhead cost is calculated as 50% of the direct labor cost.

Step-by-step explanation:

To calculate the total cost of Job X-10, we need to calculate the overhead cost and add it to the direct labor cost and materials cost. The overhead cost is calculated by multiplying the direct labor cost by the rate of 50%. So, 50% of $3,500 is $1,750. Therefore, the total cost of Job X-10 is $5,000 (materials cost) + $3,500 (direct labor cost) + $1,750 (overhead cost) = $10,250.