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28 August, 13:53

The Jase Company allocates overhead based on a predetermined overhead rate of $9.00 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

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  1. 28 August, 17:02
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    The total cost of job J904 = $7,200

    Explanation:

    Direct material cost = 8 tons * $600 / ton = $4,800

    Direct labour cost = 80 hours * $21 / hour = $1,680

    Overhead cost = 80 hours * $9 / hour = $720

    Total = $7,200
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