The Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Factory overhead rate is $22.50 per machine hour.
$\begin{array}{ll}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labour hours worked } & 300 \text { hours } \
\text { Direct labour rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
-Refer to the Figure.Suppose one-half of Job X4A was sold for $10,000.What would be the total amount of costs assigned to Job X4A?

Question

The Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Factory overhead rate is $22.50 per machine hour.
 $\begin{array}{ll}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labour hours worked } & 300 \text { hours } \
\text { Direct labour rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
-Refer to the Figure.Suppose one-half of Job X4A was sold for $10,000.What would be the total amount of costs assigned to Job X4A?

Quizplus · Accepted Answer

Total direct materials cost = $9,000Total direct labor cost = 300 hours x $15 per hour = $4,500Total factory overhead cost = 100 hours x $22.50 per hour = $2,250Total cost assigned to Job X4A = $9,000 + $4,500 + $2,250 = $15,750

The Solidwood Corporation Manufactures Custom-Made Furniture -Refer to the Figure