Gallagher Company Gallagher Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost.Job #63 is charged with direct material of $12,000 and overhead of $7,200.Job #64 has direct material of $2,000 and direct labor of $9,000.
Refer to Gallagher Company.What is the total cost of Job #64?

Question

Quizplus · Accepted Answer

The total cost of Job #64 includes direct materials ($2,000), direct labor ($9,000), and applied overhead (120% of direct labor, which is $10,800). Therefore, the total cost is $2,000 + $9,000 + $10,800 = $21,800.

Gallagher Company Gallagher Company Has a Job-Order Costing System and an Overhead