Job Z2 requires $1,350 of material, $100 of which is indirect material. If manufacturing overhead is applied at a rate of 150% of direct labor cost and there were 232 labor hours charged to Job Z2 at $13 an hour, the total cost of Job Z2 would be:

Question

Quizplus · Accepted Answer

Direct material cost for Job Z2 is $1,350 - $100 = $1,250.

Direct labor cost for Job Z2 is 232 hours x $13 = $3,016.

Manufacturing overhead applied is 150% x $3,016 = $4,524.

Total cost of Job Z2 is $1,250 + $3,016 + $4,524 = $8,790.

Therefore, the answer is B.

Job Z2 Requires $1,350 of Material, $100 of Which Is