Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. $$\begin{array} { | l | l | }
\hline \text { Direct materials cost } & \$ 23,500 \
\hline \text { Direct labor cost } & \$ 13,000 \
\hline \text { Direct labor hours } & 300 \text { hours } \
\hline \text { Units of product produced } & 400 \text { units } \
\hline
\end{array}$$ How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Question

Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. $$\begin{array} { | l | l | } 
\hline \text { Direct materials cost } & \$ 23,500 \
\hline \text { Direct labor cost } & \$ 13,000 \
\hline \text { Direct labor hours } & 300 \text { hours } \
\hline \text { Units of product produced } & 400 \text { units } \
\hline
\end{array}$$ How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Quizplus · Accepted Answer

The predetermined overhead rate is calculated as $1,030,000 / $830,000 = 1.24 or 124%. The overhead allocated to Job 511 is 124% of the direct labor cost, which is 1.24 * $13,000 = $16,120. The total job cost is the sum of direct materials, direct labor, and allocated overhead: $23,500 + $13,000 + $16,120 = $52,620, rounded to $52,633.

Gill Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct