The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be:

Total Manufacturing Cost = $9,347

Explanation:

Total cost for the job 450 is as follows:

Direct material = $2,057

Direct labor = $888 (Note - 1)

Overhead cost = $6,402 (Note - 2)

Total Manufacturing Cost = $9,347

Note - 1: Direct labor = Direct labor-hours * Direct labor wage rate

Given,

Direct labor-hours = 37 hours

Direct labor wage rate = $24 per labor-hour

Direct labor = 37 hours * $24 per labor-hour

Direct labor = $888

Note - 2: Overhead cost = Machine-hours * predetermined overhead rate

Given,

Machine-hours = 194 hours

predetermined overhead rate = $33

Overhead cost = 194 hours * $33 = $6,402