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Direct materials $3,193
Direct labor-hours 21 labor-hours
Direct labor wage rate $12 per labor-hour
Machine-hours 166 machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost that would be recorded on the job cost sheet for Job would be:________

a. $5,935
b. $3,760
c. $3,445
d. $3,220

Respuesta :

Answer:

correct option is a. $5,935

Explanation:

given data

Direct materials = $3,193

Direct labor hours  = 21  

Direct labor wage rate =  $12

Machine hours = 166

overhead rate = $15

solution

we get Direct labor that is

Direct labor = 21  × $12

Direct labor = 252

and

manufacturing overhead is

manufacturing overhead = 166 × $15

manufacturing overhead  = 2490

so here total cost will be

total cost = Direct materials + Direct labor + manufacturing overhead  ............1

Total cost =  $3,193  + $252 + $2490

Total cost = $5935

so correct option is a. $5,935

Answer:

The correct answer is option (A).

Explanation:

According to the scenario, the given data are as follows:

Direct material = $3,193

Direct labor-hours = 21 Hours

Direct labor wage = $12 / hour

So, Direct labor cost = Direct labor-hours × Direct labor wage = 21 × $12

= $252

Machine hours = 166 hours

Overhead rate = $15 / machine hour

So, manufacturing overhead = Machine hours × Overhead rate

= 166 × $15  = $2,490

So, we can calculate the total cost by using the following formula:

Total cost = Direct material + Direct labor cost + manufacturing overhead

= $3,193 + $252 + $2,490

= $5,935

Hence, the total cost that would be recorded is $5,935.

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