Wesley Corporation charged Job 110 with $12,000 of direct materials and $13,500 of direct labor.Allocation for manufacturing overhead is 80% of direct labor costs.What is the total cost of Job 110?

Question

Quizplus · Accepted Answer

Total manufacturing overhead cost is calculated by multiplying the direct labor cost by the allocation rate of 80%, which is:

$13,500 x 0.80 = $10,800

The total cost of the job is the sum of the direct materials, direct labor, and manufacturing overhead costs, which is:

$12,000 + $13,500 + $10,800 = $36,300

Therefore, the answer is C.

Wesley Corporation Charged Job 110 with $12,000 of Direct Materials