Question

The records at Smith and Jones, Inc. show that Job 110 is charged with $10,000 of direct materials and $13,000 of direct labor. The company allocates manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110

Answer 1

Step-by-step explanation:

Manufacturing overhead will be calculated as:

= 85% × direct labor cost.

= 85% × $13000

= 0.85 × $13000

= $11050

Direct material = $10,000

Direct labor = $13000

Total cost = Direct material + Direct labor + Manufacturing overhead

= $10000 + $13000 + $11050

= $34050