London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2600 tiles; each tile sells for $14.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2600 units at 4.00 per unit
Specialty paint: 7 quarts at $13.00 per quart
High gloss glaze: 14 quarts at $17.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 24 hours at $27 per hour
Matthew Kline: 25 hours at $16 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour.
What is the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #266's job cost record?

Question

Quizplus · Accepted Answer

Direct Materials:
2600 basic terra cotta tiles at $4.00 per unit = $10,400
7 quarts of specialty paint at $13.00 per quart = $91
14 quarts of high gloss glaze at $17.00 per quart = $238
Total Direct Materials = $10,729

Direct Labor:
Alice Cooper: 24 hours at $27 per hour = $648
Matthew Kline: 25 hours at $16 per hour = $400
Total Direct Labor = $1,048

Manufacturing Overhead:
Direct labor hours = 24 + 25 = 49 hours
Manufacturing overhead allocated at $30 per direct labor hour = $1,470

Total Job Cost:
Direct Materials + Direct Labor + Manufacturing Overhead = $10,729 + $1,048 + $1,470 = $13,247.

Therefore, the best choice is (D).

London Ceramics Makes Custom Ceramic Tiles