The following data have been recorded for recently completed Job 323 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: a) $6,303 b) $6,722 c) $9,347 d) $11,492

Question

Darren Atkinson

Business

16 July, 09:09

The following data have been recorded for recently completed Job 323 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: a) $6,303 b) $6,722 c) $9,347 d) $11,492

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Answers (1)

Know the Answer?

Gia Bishop · Answer 1

The correct answer is C.

Explanation:

Giving the following information:

The direct materials = $2,057.

Direct labor hours = 37

Machine hours = 194

The direct labor wage rate is $24 per labor-hour.

The predetermined overhead rate is $33 per machine-hour.

To calculate the total cost, we need to use the following formula:

Total cost = direct material + direct labor + allocated overhead

Direct labor = 37*24 = $888

Allocated overhead = 33*194 = $6,402

Total cost = 2,057 + 888 + 6,402 = $9,347