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15 February, 07:52

Job 593 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials $3,190

Direct labor-hours 71 labor-hours

Direct labor wage rate $15 per labor-hour

Machine-hours 175 machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

a.$6,705

b.$3,219

c.$5,249

d.$4,255

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Answers (1)
  1. 15 February, 08:09
    0
    a.$6,705

    Explanation:

    The total cost is the sum of the three cost component, Direct materials, direct labours, and factory overhead.

    Direct Labor Cost: 71 hours x $15 per hour = $ 1,065

    Manufacturing Overhead: 175 machine hours x $14 per hour = $ 2,450

    Direct Materials $ 3,190

    Total cost: 1,065 + 2,450 + 3,190 = 6,705
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