Connor Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following dа ta: Total direct labor-hours 78,000 Total fixed manufacturing overhead cost $ 460,200 Variable manufacturing overhead per direct labor-hour $ 5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 710 Direct labor cost $ 7,800 The total job cost for Job P951 is closest to:

Total cost = $9,600

Explanation:

Giving the following information:

Total direct labor-hours 78,000

Total fixed manufacturing overhead cost $ 460,200

Variable manufacturing overhead per direct labor-hour $ 5.00

Job P951:

Total direct labor-hours 100

Direct materials $ 710

Direct labor cost $ 7,800

First, we need to determine the estimated overhead rate:

Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

Estimated manufacturing overhead rate = (460,200/78,000) + 5 = $10.9 per direct labor hour.

Now, we can calculate the total cost of the job:

Total cost = 710 + 7,800 + (100*10.9)

Total cost = $9,600