The following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be:
A) $4,571
B) $3,757
C) $3,090
D) $3,427

Question

Quizplus · Accepted Answer

The total cost is calculated as follows: Direct materials cost ($3,067) + Direct labor cost (30 hours * $12/hour = $360) + Manufacturing overhead (104 machine-hours * $11/machine-hour = $1,144). Total cost = $3,067 + $360 + $1,144 = $4,571.

The Following Data Have Been Recorded for Recently Completed Job