Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. $\begin{array} { |l | l |}
\hline \text { Direct materials cost } & \$ 23,500 \
\hline \text { Direct labor cost } & \$ 13,000 \
\hline \text { Direct labor hours } & 300 \text { hours } \
\hline \text { Units of product produced } & 400 \text { units } \
\hline
\end{array}$ How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Question

Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. $\begin{array} { |l | l |} 
\hline \text { Direct materials cost } & \$ 23,500 \
\hline \text { Direct labor cost } & \$ 13,000 \
\hline \text { Direct labor hours } & 300 \text { hours } \
\hline \text { Units of product produced } & 400 \text { units } \
\hline
\end{array}$ How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Quizplus · Accepted Answer

$\begin{array}{llcc}
  \text {Estimated manufacturing overhead costs for the year  } &\$1,030,000  \
 \text {Estimated total direct labor costs  } &\$830,000\
 \text { Predetermined overhead allocation rate as a percentage of direct } &(\$ 13,000 \times 124.1 \%  \
 \text {   labor cost $ (\$ 1,030,000 / \$ 830,000) $} &124.1\%\
\
 \text { Calculation of manufacturing overhead costs allocated to Job 511: } &\
\text { Direct materials cost }&\$23,500\
 \text {Direct labor cost  } &\underline{\$13,000}\
 \text {Manufacturing overhead costs allocated to Job 511  } &\underline{\$16,133}\
\text { Total job cost of Job } 511&\$52,633
\end{array}$

Gill Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct