Miller Company Miller Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available:
Refer to Miller Company.What is the total cost of Job #504 assuming that overhead is applied at the rate of 135% of direct labor cost (rounded to the nearest whole dollar)?

Question

Miller Company Miller Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available:
 Refer to Miller Company.What is the total cost of Job #504 assuming that overhead is applied at the rate of 135% of direct labor cost (rounded to the nearest whole dollar)?

Quizplus · Accepted Answer

Direct materials cost = $143,000
Direct labor cost = $65,500
Applied overhead = 135% x $65,500 = $88,425
Total cost of Job #504 = $143,000 + $65,500 + $88,425 = $275,925, rounded to $275,000. Therefore, the best choice is C.

Miller Company Miller Company Uses a Job-Order Costing System