Use the following information for the next 2 questions. Sparkle Company uses job costing and applies overhead using an actual costing system using direct labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated direct labor cost is $500,000 and estimated direct labor hours are 25,000. This period actual overhead cost was $420,000, actual direct labor cost was $390,000, and actual direct labor hours were 20,000.
-What is the total manufacturing cost of Job 402?
A) $1,100
B) $1,772
C) $1,320
D) $1,640

Question

Use the following information for the next 2 questions.  Sparkle Company uses job costing and applies overhead using an actual costing system using direct labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated direct labor cost is $500,000 and estimated direct labor hours are 25,000. This period actual overhead cost was $420,000, actual direct labor cost was $390,000, and actual direct labor hours were 20,000.
-What is the total manufacturing cost of Job 402?
A) $1,100 
B) $1,772 
C) $1,320 
D) $1,640

Quizplus · Accepted Answer

The total manufacturing cost of Job 402 is $1,772, as it is the sum of direct materials, direct labor, and manufacturing overhead costs associated with the job.

Use the Following Information for the Next 2 Questions