Venus Crates manufactures custom crates for a variety of uses. The following data have been recorded for Job 551, which was recently completed. Direct materials used cost $7700. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. There were 179 direct labor hours worked on this job at a direct labor wage rate of $31 per hour. What is the total manufacturing cost of Job 551?

Question

Quizplus · Accepted Answer

The total manufacturing cost of Job 551 is calculated by adding the direct materials, direct labor, and manufacturing overhead. Direct materials cost $7700. Direct labor is 179 hours at $31 per hour, which equals $5549. Manufacturing overhead is 90 machine hours at $32 per machine hour, which equals $2880. Adding these together: $7700 (direct materials) + $5549 (direct labor) + $2880 (manufacturing overhead) = $16,129.

Venus Crates Manufactures Custom Crates for a Variety of Uses