Job 607 was recently completed. The following data have been recorded on its job cost sheet:
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607 would be:
A) $4,107
B) $6,319
C) $3,432
D) $4,863

Question

Job 607 was recently completed. The following data have been recorded on its job cost sheet: 
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607 would be:
A) $4,107 
B) $6,319 
C) $3,432 
D) $4,863

Quizplus · Accepted Answer

To calculate the total cost recorded on the job cost sheet for Job 607, we need to add up the direct materials, direct labor, and manufacturing overhead.

Direct materials = $1,200 
Direct labor = $1,650 
Manufacturing overhead = Predetermined overhead rate * Machine-hours used 
Machine-hours used = 180 
Manufacturing overhead = $14/hour * 180 hours = $2,520

Total cost = Direct materials + Direct labor + Manufacturing overhead 
Total cost = $1,200 + $1,650 + $2,520 
Total cost = $6,319

Therefore, the total cost recorded on the job cost sheet for Job 607 would be $6,319. Option B is the correct answer.

Job 607 Was Recently Completed