The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A total of 32 direct labor-hours and 216 machine-hours were worked on the job. The direct labor wage rate is $21 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $29 per machine-hour. The total cost for the job on its job cost sheet would be:

Question

Business

Charlie Lam

5 February, 03:35

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A total of 32 direct labor-hours and 216 machine-hours were worked on the job. The direct labor wage rate is $21 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $29 per machine-hour. The total cost for the job on its job cost sheet would be:

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Fatty · Answer 1

Total cost = $8993

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

In this exercise:

direct materials = $2057

direct labor = 32hours*$21=$672

manufacturing overhead = 216hours*$29 = $6264

Total cost = 2057 + 672 + 6264 = $8993