Question

Muscat Sayarati Co. uses a job-order costing system with a single plantwide predetermined overhead rate based on labor-hours . The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $525,000, variable manufacturing overhead of $6.00 per labor -hour, and 35,000 abor-hours. The job sheet of Job G828 shows that the number of units in this job order is 45 units which incurred total of 90 labor-hours. This job consumed \$14/unit of direct materials cost and \$64/unit of direct labor costs. What would be the ?total cost for Job G828 approximately

Answer 1

$810

Step-by-step explanation:

Calculation to determine cost for Job G828

Estimated total manufacturing overhead cost = $525,000 + ($6.00× 35,000) = 315,000

Predetermined overhead rate = $315,000 ÷ 35,000 = $9

Overhead applied to a particular job = $9×90 = $810.