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30 September, 09:43

The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be: a) $6,303 b) $6,722 c) $9,347 d) $11,492

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  1. 30 September, 10:38
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    The correct answer is C.

    Explanation:

    Giving the following information:

    The direct materials = $2,057.

    Direct labor hours = 37

    Machine hours = 194

    The direct labor wage rate is $24 per labor-hour.

    The predetermined overhead rate is $33 per machine-hour.

    To calculate the total cost, we need to use the following formula:

    Total cost = direct material + direct labor + allocated overhead

    Direct labor = 37*24 = $888

    Allocated overhead = 33*194 = $6,402

    Total cost = 2,057 + 888 + 6,402 = $9,347
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