Peale Company. Peale Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15.
Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000.
Refer to Peale Company. Assume the balance in Work in Process Inventory was $21,500 on April 1 and $29,520 on April 30. The balance on June 30 represents one job that contains direct material of $12,375. How many direct labor hours have been worked on this job (rounded to the nearest hour) ?
A) 802
B) 1,381
C) 1,805
D) 3,107
Correct Answer:
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