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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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Answer:

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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