Phillips Company Phillips Company uses a job-order costing system.Assume that Job #309 is the only one in process.The following information is available:
Refer to Phillips Company.What is the total cost of Job #309 assuming that overhead is applied at the rate of 130% of direct labor cost (rounded to the nearest whole dollar)?

Question

Phillips Company Phillips Company uses a job-order costing system.Assume that Job #309 is the only one in process.The following information is available:
 Refer to Phillips Company.What is the total cost of Job #309 assuming that overhead is applied at the rate of 130% of direct labor cost (rounded to the nearest whole dollar)?

Quizplus · Accepted Answer

To find the total cost of Job #309, we need to add up the direct materials, direct labor, and overhead costs.

Direct materials cost = $13,800 
Direct labor cost = 200 hours x $25/hour = $5,000 
Overhead cost = 130% x $5,000 = $6,500

Total cost of Job #309 = $13,800 + $5,000 + $6,500 = $25,300

Therefore, the correct answer is C) $306,750 (rounded to the nearest whole dollar).

Phillips Company Phillips Company Uses a Job-Order Costing System