Sharp Tables produces go carts designed to a customer's specification with the customer's logo. Job 65 consists of producing 40 carts for Race Around for a new store opening. Overhead is applied on the basis of direct labor hours using a predetermined overhead rate of $18 per hour. Job 65 inc $\begin{array}{ll}
\text { Direct materials }&\$2,200\
\text { Direct labor }&28 \text { hours at } \$ 15 \text { per hour }
\end{array}$
urred the following amounts:
How much is the cost of Job 65?

Question

Sharp Tables produces go carts designed to a customer's specification with the customer's logo. Job 65 consists of producing 40 carts for Race Around for a new store opening. Overhead is applied on the basis of direct labor hours using a predetermined overhead rate of $18 per hour. Job 65 inc $\begin{array}{ll}
\text { Direct materials }&\$2,200\
\text { Direct labor }&28 \text { hours at } \$ 15 \text { per hour }
\end{array}$
 urred the following amounts:
How much is the cost of Job 65?

Quizplus · Accepted Answer

The cost of Job 65 is the sum of direct materials, direct labor, and overhead. Direct materials are $2,200, direct labor is 28 hours at $15 per hour = $420, and overhead is 28 hours at $18 per hour = $504. Therefore, the total cost of Job 65 is $2,200 + $420 + $504 = $3,124.