The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job cost sheet would be:
A)$3,259
B)$2,741
C)$4,715
D)$2,287

Question

Quizplus · Accepted Answer

Direct labor cost = 37 labor-hours x $13 per labor-hour = $481
Manufacturing overhead cost = 141 machine-hours x $14 per machine-hour = $1,974
Total cost for the job = Direct materials cost + Direct labor cost + Manufacturing overhead cost
= $2,260 + $481 + $1,974 = $4,715. Therefore, the best choice is C.

The Following Data Have Been Recorded for Recently Completed Job