Star Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 732 are as follows: $\begin{array}{|l|c|}
\hline \text { Direct materials used } & \$ \quad 5,600 \
\hline \text { Direct labor cost } &\$ 2,500 \
\hline \begin{array}{l}
\text { Predetermined manufacturing overhead rate based on } \
\text { machine hours }
\end{array} & \$12 \
\hline \text { Direct labor hours worked } & 250 \
\hline \text { Machine hours used } & 300 \
\hline
\end{array}$ What is the manufacturing cost of Job 732?

Question

Quizplus · Accepted Answer

The manufacturing cost of Job 732 is calculated by adding direct materials, direct labor, and applied manufacturing overhead. Direct materials are $5,600, direct labor is $2,500, and manufacturing overhead is $12 per machine hour for 300 machine hours, which equals $3,600. Total cost = $5,600 + $2,500 + $3,600 = $11,700.

Star Corporation Manufactures Custom Molds for Use in the Extrusion