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Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000. What
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Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000.

What would be recorded as the cost of job WR53?

a. $200.

b. $350.

c. $380.

d. $730.

User Don Omondi
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1 Answer

2 votes

Answer:

d. $730.

Step-by-step explanation:

Material cost = $200

Direct labor expense = $15 x 10 = $150

Overheads = $38 x 10 = $380

Total cost $730

Predetermined overhead rate = Estimated total overhead / estimated direct labor hours = $760,000 / 20,000 = $38 per labor hour.

User Jeffrey Kramer
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