Kubes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate of $5.50 based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $2.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed:

Total direct labor-hours 100

Direct materials $520

Direct labor cost $2,800

The total job cost for Job A477 is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Business

Mireya Ortega

24 May, 06:42

Kubes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate of $5.50 based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $2.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed:

Total direct labor-hours 100

Direct materials $520

Direct labor cost $2,800

The total job cost for Job A477 is closest to: (Round your intermediate calculations to 2 decimal places.)

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Answers (1)

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Niko Friedman · Answer 1

Total cost = $3,870

Explanation:

Giving the following information:

predetermined overhead rate = $5.50

Job A477:

Total direct labor-hours 100

Direct materials $520

Direct labor cost $2,800

First, we need to calculate the allocated overhead:

Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

Allocated MOH = 5.50*100 = $550

Now, we can determine the total cost:

Total cost = 520 + 2,800 + 550 = $3,870