Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: $$\begin{array} { | l | r| }
\hline \text { Direct labor cost } & \$ 860 \
\hline \text { Direct materials cost } & \$ 1,100 \
\hline \text { Machine hours } & 9 \text { hours } \
\hline \text { Direct labor hours } & 23 \text { hours } \
\hline \text { Predetermined overhead allocation rate } & \$ 80 \text { per machine hour } \
\hline
\end{array}$$ 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: $$\begin{array} { | l | r| } 
\hline \text { Direct labor cost } & \$ 860 \
\hline \text { Direct materials cost } & \$ 1,100 \
\hline \text { Machine hours } & 9 \text { hours } \
\hline \text { Direct labor hours } & 23 \text { hours } \
\hline \text { Predetermined overhead allocation rate } & \$ 80 \text { per machine hour } \
\hline
\end{array}$$ 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 allocated overhead. The allocated overhead is the product of the predetermined overhead allocation rate and the machine hours used. Thus, the total cost is $860 (direct labor) + $1,100 (direct materials) + ($80 per machine hour * 9 hours) = $860 + $1,100 + $720 = $2,680.

Iglesias,Inc What Is the Total Cost of Job 12? A) $2,680

Iglesias,Inc What Is the Total Cost of Job 12?
A) $2,680