Question

Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used.

Required:
What is the total manufacturing cost of Job 651?

Answer 1

The right answer is "$14,496".

Step-by-step explanation:

The given values are:

Direct material cost,

= $7700

Labor hours,

= 178

Wage rate,

= $22 per hour

Machine hours,

= 90

Predetermined overhead rate per machine,

= $32

Now,

The direct labors cost will be:

=
`Labor \ hours* wage \ rate`

=
`178* 22`

=
`3,916` ($)

Mfg. overhead costs will be:

=
`Machine \ hours* Predetermined \ overhead \ rate`

=
`90* 32`

=
`2,880` ($)

So,

The total manufacturing cost will be:

=
`7700+3916+2880`

=
`14,496` ($)