New Bern Company applies overhead to jobs at the rate of 40 percent of direct labor cost.Direct material of $1,250 and direct labor of $1,400 were expended on Job #145 during June.On May 31,the balance of Job #145 was $2,800.The balance on June 30 is:

Question

Quizplus · Accepted Answer

The total cost incurred on the job is:
Direct material cost + Direct labor cost = $1250 + $1400 = $2650

Overhead cost = 40% of direct labor cost = 40% of $1400 = $560

Total cost of Job #145 = $2650 + $560 = $3210

Since the balance on Job #145 on May 31 was $2800, the balance on June 30 would be:
$2800 (Balance on May 31) + $3210 (Total cost incurred in June) = $6010

Therefore, the balance on Job #145 on June 30 is $6,010.

New Bern Company Applies Overhead to Jobs at the Rate