Tenderfoot company uses a job costing system. The work in process inventory on December 31, 2012 consisted of Job No. 175. This job had been charged with direct materials of $17,400 and direct labor of $20,000. Overhead is charged at a rate of 80% of direct labor cost. The cost of Job No. 175 was:

Question

Gilda

Business

19 August, 08:36

Tenderfoot company uses a job costing system. The work in process inventory on December 31, 2012 consisted of Job No. 175. This job had been charged with direct materials of $17,400 and direct labor of $20,000. Overhead is charged at a rate of 80% of direct labor cost. The cost of Job No. 175 was:

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Answers (1)

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Anabel Richmond · Answer 1

Total cost = $53,400

Explanation:

Giving the following information:

Job No. 175:

This job had been charged with:

Direct materials of $17,400

Direct labor of $20,000.

Overhead is charged at a rate of 80% of direct labor cost

Total cost = direct labor + direct materials + manufacturing overhead

Total cost = 20000 + 17400 + (0.80*20000) = $53,400