Asked by Kattelin Crocker on May 04, 2024
Verified
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:
A) $4,332
B) $3,734
C) $3,072
D) $5,086
Direct Materials Cost
The cost of raw materials and components that are directly used in the production of a product.
Direct Labor-hours
Direct labor-hours are the total time workers spend on producing a particular unit of goods or services.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base, such as labor hours or machine hours.
- Figure out the entire cost of a project through job cost sheet information, taking into account materials, labor, and overhead that is applied.
- Appraise the level of overhead assigned to a job rooted in predetermined overhead rates.
Verified Answer
RM
Rebecca MeyerMay 07, 2024
Final Answer :
D
Explanation :
Direct materials cost = $3,044
Direct labor cost = 46 hours x $15 per hour = $690
Manufacturing overhead cost = 104 machine-hours x $13 per machine-hour = $1,352
Total cost for the job = Direct materials cost + Direct labor cost + Manufacturing overhead cost
= $3,044 + $690 + $1,352
= $5,086
Therefore, the total cost for the job on its job cost sheet would be $5,086, which is option D.
Direct labor cost = 46 hours x $15 per hour = $690
Manufacturing overhead cost = 104 machine-hours x $13 per machine-hour = $1,352
Total cost for the job = Direct materials cost + Direct labor cost + Manufacturing overhead cost
= $3,044 + $690 + $1,352
= $5,086
Therefore, the total cost for the job on its job cost sheet would be $5,086, which is option D.
Learning Objectives
- Figure out the entire cost of a project through job cost sheet information, taking into account materials, labor, and overhead that is applied.
- Appraise the level of overhead assigned to a job rooted in predetermined overhead rates.