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 incurred the following amounts: $\begin{array}{lr}
\text { Direct materials } & \$ 2,200 \
\text { Direct labor } & 28 \text { hours at } \$ 15 \text { per hour }
\end{array}$ How much is the cost of Job 65?

Question

Quizplus · Accepted Answer

The cost of Job 65 is calculated by adding direct materials, direct labor, and applied overhead. Direct materials cost $2,200. Direct labor is 28 hours at $15 per hour, totaling $420. Overhead is applied at $18 per hour for 28 hours, totaling $504. Adding these amounts gives $2,200 + $420 + $504 = $3,124.