Job 593 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials $2,461

Direct labor-hours 74 labor-hours

Direct labor wage rate $18 per labor-hour

Machine-hours 137 machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

(A) $3,720

(B) $3,793

(C) $7,236

(D) $6,396

Question

Business

Trevon Cannon

28 March, 20:00

Job 593 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials $2,461

Direct labor-hours 74 labor-hours

Direct labor wage rate $18 per labor-hour

Machine-hours 137 machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

(A) $3,720

(B) $3,793

(C) $7,236

(D) $6,396

+3

Answers (1)

Know the Answer?

Amira Zimmerman · Answer 1

JOB 593

Total cost of the job

Direct material 2,461

Direct labour (74 hrs @ $18) 1,332

Overhead applied (137 hrs x $19) 2,603

Total cost of the job 6,396

The correct answer is D

Explanation:

The total cost of the job is the aggregate of direct material cost, direct labour cost and overhead applied. Overhead applied is calculated as overhead application rate multiplied by actual machine hours.