The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:
A) $4,332
B) $3,734
C) $3,072
D) $5,086

Question

Quizplus · Accepted Answer

Direct materials cost = $3,044 
Direct labor cost = 46 hours x $15 per hour = $690 
Manufacturing overhead cost = 104 machine-hours x $13 per machine-hour = $1,352

Total cost for the job = Direct materials cost + Direct labor cost + Manufacturing overhead cost 
= $3,044 + $690 + $1,352 
= $5,086

Therefore, the total cost for the job on its job cost sheet would be $5,086, which is option D.

The Following Data Have Been Recorded for Recently Completed Job