Question

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 85,000 Total fixed manufacturing overhead cost $ 306,000 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 700 Direct labor cost $ 8,500 The total job cost for Job P951 is closest to:

Answer 1

Total job cost $10,160

Step-by-step explanation:

The computation of the total job cost is shown below:

Predetermined fixed overhead rate

= total fixed manufacturing overhead expense ÷ total direct labor hours

= $306,000 ÷ $85000

= $3.60 Per hour

Now

Particulars Cost

direct materials $700

Direct labor cost $8500

Fixed manufacturing overhead cost (100 × 3.60) $360

Variable manufacturing overhead cost (100 × 6.00) $600

Total job cost $10,160