Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $2,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor cost. The pre-determined overhead rate is 150% of direct labor cost. The total cost that would be recorded on the job cost sheet for job 731 would be:

Question

Chase Mendoza

Business

28 June, 17:09

Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $2,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor cost. The pre-determined overhead rate is 150% of direct labor cost. The total cost that would be recorded on the job cost sheet for job 731 would be:

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Answers (1)

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Ezekiel Kirk · Answer 1

Total cost = $5,000

Explanation:

Giving the following information:

Job 731:

Direct Materials = $2,500

Direct Labor hours = 100

Direct Labor wage rate: $10.00 per hour

First, we need to calculate the direct labor cost and then allocate overhead:

Direct labor = 100*10 = $1,000

Allocated overhead = 1,000*1.5 = $1,500

Total cost = 2,500 + 1,000 + 1,500

Total cost = $5,000