Wilson Company applies overhead using machine hours as the allocation base, at a rate of $15 per machine hour.Job 44 requires $320 worth of material, 11 hours of labor at $16 per hour and 9 machine hours.What is the cost of job 44?

Question

Quizplus · Accepted Answer

The cost of Job 44 includes materials, labor, and applied overhead. Materials cost $320. Labor cost is 11 hours x $16/hour = $176. Overhead is 9 machine hours x $15/machine hour = $135. Total cost = $320 + $176 + $135 = $631.

Wilson Company Applies Overhead Using Machine Hours as the Allocation