Question

B Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Recently Job M242 was completed with the following characteristics:
Number of units in the job 200
Total machine-hours 60
Direct materials $725
Direct labor cost $1,680
Required: Calculate the total job cost for Job M242.

Answer 1

To calculate the total job cost for Job M242, we need to consider the direct materials, direct labor, and overhead costs. The total job cost for Job M242 is $3,605.

Step-by-step explanation:

To calculate the total job cost for Job M242, we need to consider the direct materials, direct labor, and overhead costs. In this case, we have the following information:

Direct materials: $725

Direct labor cost: $1,680

Machine-hours: 60

Since B Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours, we can calculate the overhead cost by multiplying the machine-hours by the predetermined overhead rate. Let's assume the predetermined overhead rate is $20 per machine-hour. Then the overhead cost would be $20 x 60 machine-hours = $1,200.

Finally, we can calculate the total job cost by adding the direct materials, direct labor, and overhead costs together:

Total job cost = Direct materials + Direct labor + Overhead cost

Total job cost = $725 + $1,680 + $1,200 = $3,605.