Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used $130,000
Direct lab or per hour $\$ 9.50$
Overhead applied bared on direct lab or cost $125 \%$
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.What is the prime cost of Job #8?

Question

Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used                                                            $130,000
Direct lab or per hour                                                        $\$ 9.50$
Overhead applied bared on direct lab or cost                     $125 \%$ 
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.What is the prime cost of Job #8?

Quizplus · Accepted Answer

Prime cost consists of direct materials and direct labor. For Job #8, direct materials are 25% of $130,000, which is $32,500. Direct labor is calculated as 2,800 hours at $9.50 per hour, which equals $26,600. Adding these together gives a prime cost of $59,100 for Job #8.

Robertson Company $9.50\$ 9.50$9.50 Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;

Robertson Company $\$ 9.50$ Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;