Asked by Tristan Gebbia on Jul 03, 2024
Verified
The total job cost for Job T498 is closest to:
A) $4,430
B) $3,670
C) $1,710
D) $3,480
Total Job Cost
The sum of all costs directly attributed to a specific job, including materials, labor, and overhead.
- Examine the method of attributing manufacturing overhead costs to particular job assignments.
- Comprehend the influence of manufacturing overhead costs on the job cost sheets.
Verified Answer
JG
jeremiah ganawayJul 05, 2024
Final Answer :
A
Explanation :
Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base)= $497,000 + ($2.40 per direct labor-hour × 70,000 direct labor-hours)= $497,000 + $168,000 = $665,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $665,000 ÷ 70,000 direct labor-hours = $9.50 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $9.50 per direct labor-hour × 80 direct labor-hours = $760
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $665,000 ÷ 70,000 direct labor-hours = $9.50 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $9.50 per direct labor-hour × 80 direct labor-hours = $760
Learning Objectives
- Examine the method of attributing manufacturing overhead costs to particular job assignments.
- Comprehend the influence of manufacturing overhead costs on the job cost sheets.
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