Job 910 was recently completed. The following data have been recorded on its job cost sheet:Direct materials $ 2,429 Direct labor-hours 74 labor-hoursDirect labor wage rate $ 17 per labor-hourMachine-hours 135 machine-hoursThe Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:Multiple Choice$6,957$3,441$3,687$6,117
Question
Job 910 was recently completed. The following data have been recorded on its job cost sheet:Direct materials 17 per labor-hourMachine-hours 135 machine-hoursThe Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is 6,9573,687$6,117
Solution
To calculate the total cost recorded on the job cost sheet for Job 910, we need to add up the costs of direct materials, direct labor, and manufacturing overhead.
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Direct materials cost is given as $2,429.
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Direct labor cost can be calculated by multiplying the direct labor hours by the direct labor wage rate. So, 74 labor-hours * 1,258.
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Manufacturing overhead cost is calculated by multiplying the machine hours by the predetermined overhead rate. So, 135 machine-hours * 2,430.
Now, add up all these costs: 1,258 (direct labor) + 6,117.
So, the total cost that would be recorded on the job cost sheet for Job 910 is $6,117.
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