Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 651?

Question

Quizplus · Accepted Answer

The total manufacturing cost of Job 651 is calculated by adding the direct materials, direct labor, and applied overhead. Direct materials cost $7700. Direct labor cost is 178 hours * $22/hour = $3916. Applied overhead is 90 machine hours * $32/machine hour = $2880. Adding these together gives $7700 + $3916 + $2880 = $14,496.

Jasper Carts Manufactures Custom Carts for a Variety of Uses