Levine Company
Levine Company has a job-order costing system and an overhead application rate of 125 percent of direct labor cost.Job #123 is charged with direct material of $18,000 and overhead of $9,000.Job #124 has direct material of $4,500 and direct labor of $12,000.
Refer to Levine Company.What is the total cost of Job #124?

Question

Quizplus · Accepted Answer

The total cost of Job #124 is calculated by adding the direct material, direct labor, and applied overhead. The direct material is $4,500, and the direct labor is $12,000. The overhead is applied at 125% of direct labor, which is $12,000 * 125% = $15,000. Adding these together gives $4,500 (direct material) + $12,000 (direct labor) + $15,000 (overhead) = $31,500.

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