Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: $$\begin{array} { | l | r | }
\hline \text { Direct labor cost } & \$ 850 \
\hline \text { Direct materials cost } & \$ 1000 \
\hline \text { Machine hours } & 8 \text { hours } \
\hline \text { Direct labor hours } & 24 \text { hours } \
\hline \text { Predetermined overhead allocation rate } & \$ 70 \text { per machine hour } \
\hline
\end{array}$$ What is the total cost of Job 12?

Question

Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: $$\begin{array} { | l | r | } 
\hline \text { Direct labor cost } & \$ 850 \
\hline \text { Direct materials cost } & \$ 1000 \
\hline \text { Machine hours } & 8 \text { hours } \
\hline \text { Direct labor hours } & 24 \text { hours } \
\hline \text { Predetermined overhead allocation rate } & \$ 70 \text { per machine hour } \
\hline
\end{array}$$ What is the total cost of Job 12?

Quizplus · Accepted Answer

The total cost of Job 12 is calculated by adding direct labor cost, direct materials cost, and applied overhead. Overhead is calculated as machine hours multiplied by the predetermined overhead rate: (8 hours * $70/hour) = $560. Total cost = $850 (labor) + $1000 (materials) + $560 (overhead) = $2410.

Iglesias,Inc What Is the Total Cost of Job 12? A)$2410 B)$1850

Iglesias,Inc What Is the Total Cost of Job 12?
A)$2410
B)$1850