Williams Company
Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost.Job #63 is charged with direct material of $12,000 and overhead of $7,200.Job #64 has direct material of $2,000 and direct labor of $9,000.
Refer to Williams Company.What is the total cost of Job #64?

Question

Quizplus · Accepted Answer

The total cost of Job #64 is calculated by adding the direct material, direct labor, and applied overhead. The direct material is $2,000, and the direct labor is $9,000. The overhead is applied at 120% of direct labor, which is 120% of $9,000 = $10,800. Therefore, the total cost is $2,000 (direct material) + $9,000 (direct labor) + $10,800 (overhead) = $21,800.

Williams Company Williams Company Has a Job-Order Costing System and an Overhead