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The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be:

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Kolawole845

Answer:

Total cost of Job = $9,347

Explanation:

The total cost of Job 323 would be the sum of the direct costs and the manufacturing overheads

Total cost = Direct material + direct labour + Overhead

The overhead absorption rate would be used to charge overhead to  Job 323.

The absorbed overhead = OAR × actual machine hours used for Job 33

Total cost = 2,057 + (24× 37) + (194× 33) = $9,347

Total cost of Job = $9,347

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