Figure 5 - 1
Direct materials placed into production $9,000
Direct labor hours worked 300 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units.
-Refer to Figure 5-1. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?

Question

Quizplus · Accepted Answer

The total costs assigned to Job X4A would include direct materials, direct labor, and overhead costs.

Direct materials = $9,000 
Direct labor = 300 hours x $15 per hour = $4,500

Overhead = 100 machine hours x $22.50 per machine hour = $2,250

Total costs = $9,000 + $4,500 + $2,250 = $15,750

Since only half of Job X4A was sold for $10,000, the total costs assigned to the job would still be $15,750.