Moore Company.
Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13.
Raw matenial used $120,000
Direct lab or per hour $\$ 8.50$
Overhead applied bared on direct lab or cost $120 \%$
Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000.
Refer to Moore Company.What is the prime cost of Job #6?

Question

Moore Company.
Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13.
Raw matenial used                                                            $120,000
Direct lab or per hour                                                        $\$ 8.50$
Overhead applied bared on direct lab or cost                     $120 \%$
Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000.
Refer to Moore Company.What is the prime cost of Job #6?

Quizplus · Accepted Answer

To find the prime cost of Job #6, we need to add the direct materials and direct labor costs.

Direct material used for Job #6 = 30% of $120,000 = $36,000

Direct labor for Job #6 = 2,500 hours x $8.50/hour = $21,250

Therefore, the prime cost of Job #6 = $36,000 + $21,250 = $57,250

The correct answer is B) $57,250.

Moore Company $8.50\$ 8.50$8.50 Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;

Moore Company $\$ 8.50$ Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;