Bitter Company incurs a direct labour rate of $15 per hour applies overhead to jobs on the basis of $1.25 per direct labour hour.If Job 107 shows $86,000 of direct material and $10,000 of manufacturing overhead applied,what is the total cost of job 107?

Question

Quizplus · Accepted Answer

Total cost of Job 107 = Direct material cost + Direct labor cost + Applied manufacturing overhead
Direct labor cost = 8,000 hours x $15/hour = $120,000
Applied manufacturing overhead = $10,000
Therefore, Total cost of Job 107 = $86,000 + $120,000 + $10,000 = $216,000. 
Thus, the answer is D.

Bitter Company Incurs a Direct Labour Rate of $15 Per