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 $ 7 comma 200. There were 179 direct labor hours worked on this job at a direct labor wage rate of $ 23 per hour. There were 87 machine hours used on this job. The predetermined overhead rate is $ 37 per machine hour used. What is the total manufacturing cost of Job​ 651?

Answer 1

$14,536

Step-by-step explanation:

The total manufacturing cost of job 651 is determined by the sum of the direct materials, labor and machine costs:

Direct materials cost = $7,200

Direct labor cost = 179 hours x $23/hour

Machine cost = 87 hours x $37/hour

`C=\$7,200 +(179*\$23)+(87*\$37)\\C=\$14,536`

The total manufacturing cost of Job​ 651 is $14,536.