The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: $\begin{array}{lr}
\text { Direct materials placed into production } & \$ 4,000 \
\text { Direct labor hours worked } & 50 \text { hours } \
\text { Direct labor rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What the total cost assigned to Job XY5?

Question

Quizplus · Accepted Answer

The total cost assigned to Job XY5 includes direct materials, direct labor, and applied factory overhead. Direct materials cost is $4,000. Direct labor cost is calculated as 50 hours * $15/hour = $750. The factory overhead rate is calculated as $80,000 / 20,000 hours = $4 per direct labor hour. Applied factory overhead for Job XY5 is 50 hours * $4/hour = $200. Therefore, the total cost is $4,000 (materials) + $750 (labor) + $200 (overhead) = $4,950.

The Cameron Corporation Manufactures Custom-Made Purses Factory Overhead Is Applied Using a Plant-Wide Rate Based on to Job