Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 798 are as follows: What is the total manufacturing cost of Job 798?

Question

Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 798 are as follows:  What is the total manufacturing cost of Job 798?

Quizplus · Accepted Answer

Total manufacturing cost of Job 798 = Direct Materials + Direct Labor + Manufacturing Overhead 
= $9,000 + $4,300 + ($8 x 1,740) 
= $9,000 + $4,300 + $13,920 
= $21,220 
Therefore, the correct answer is (A) $21,630.

Cooper's Company Manufactures Custom Engines for Use in the Lawn