Question

The following data have been recorded for recently completed job 450 on its job cost sheet. direct materials cost was $2,108. a total of 36 direct labor-hours and 234 machine-hours were worked on the job. the direct labor wage rate is $18 per labor-hour. the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $25 per machine-hour. the total cost for the job on its job cost sheet would be: multiple choice

O $5,562
O $10,751
O $5,981
O $8,606

Answer 1

The total cost for job 450 is calculated by adding the direct materials, direct labor, and manufacturing overhead costs. The direct materials cost is $2,108, direct labor is $648 (36 hours × $18/hour), and overhead is $5,850 (234 hours × $25/hour), totaling to $8,606.

The correct answer is d. $8,606

Step-by-step explanation:

To calculate the total cost for job 450, we need to add the direct materials cost, direct labor cost, and applied manufacturing overhead. Given the direct materials cost as $2,108, we compute direct labor cost by multiplying the number of labor-hours (36) by the direct labor wage rate ($18 per hour). This gives us a total direct labor cost of $648. The applied manufacturing overhead is calculated by multiplying the machine-hours (234) by the predetermined overhead rate ($25 per machine-hour), which results in $5,850. Adding these amounts together, the total cost for job 450 comes to:

Direct materials cost: $2,108

Direct labor cost: $648 (36 hours × $18/hour)

Manufacturing overhead: $5,850 (234 hours × $25/hour)

When we sum these costs, we get:
Total cost = Direct materials cost + Direct labor cost + Manufacturing overhead
Total cost = $2,108 + $648 + $5,850
Total cost = $8,606.

Therefore, the correct option for the total cost on the job cost sheet is $8,606.