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7 January, 14:34

Happy Maids cleans commercial buildings. In March, Happy Maids started and completed two jobs, Job 1000 and Job 1001. The job cost sheet for Job 1000 showed $1,200 of direct materials and 30 direct labor hours. The job cost sheet for Job 1001 showed $2,000 of direct materials and 50 direct labor hours. Overhead is applied at $7 per direct labor hour. The employees who worked on these two jobs were paid $15 per hour. What is the total cost for each of these two jobs for March?

A:

Job 1000, $1,610; Job 1001, $3,100

B:

Job 1000, $3,100; Job 1001, $1,860

C:

Job 1000, $1,860; Job 1001, $3,100

D:

Job 1248, $1,860; Job 1249, $2,750

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Answers (1)
  1. 7 January, 16:28
    0
    C : Job 1000, $1,860; Job 1001, $3,100

    Explanation:

    The computation of the total cost is shown below:

    For Job 1000:

    = Direct materials + Direct labor hours * wage rate per hour * Direct labor hours * overhead rate per hour

    = $1,200 + 30 * $15 + 30 * $7

    = $1,200 + $450 + $210

    = $1,860

    For Job 1001:

    = Direct materials + Direct labor hours * wage rate per hour * Direct labor hours * overhead rate per hour

    = $2,000 + 50 * $15 + 50 * $7

    = $2,000 + $750 + $350

    = $3,100
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