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23 June, 04:20

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:

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  1. 23 June, 04:47
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    The total cost for the job is $5086

    Explanation:

    Given that:

    Direct materials cost $3044

    Direct labor-hours 46 labor hours

    Direct labor wage rate $15 per labor-hour

    Machine-hours 104 machine-hours

    Overhead rate $13 per machine-hour

    Therefore:

    Direct labor = Direct labor-hours * Direct labor wage rate

    ∴ Direct labor = 46 labor hours * $15 per labor-hour = $690

    Manufacturing overhead = Machine-hours * Overhead rate

    ∴ Manufacturing overhead = 104 machine-hours * $13 per machine-hour

    Manufacturing overhead = $1352

    The total cost for the job = Direct materials cost + Direct labor + Manufacturing overhead

    ∴ The total cost for the job = $3044 + $690 + $1352 = $5086

    ∴ The total cost for the job = $5086
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