The total job cost for Job A496 is closest to:

A) $2,660
B) $3,104
C) $3,604
D) $1,444

Question

The total job cost for Job A496 is closest to:A) $2,660B) $3,104C) $3,604D) $1,444

Niyah Dixon · Accepted Answer

Final Answer : C, 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)= $237,000 + ($3.90 per machine-hour × 30,000 machine-hours)= $237,000 + $117,000 = $354,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $354,000 ÷ 30,000 machine-hours = $11.80 per machine-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $11.80 per machine-hour × 80 machine-hours = $944

The total job cost for Job A496 is closest to:

A) $2,660
B) $3,104
C) $3,604
D) $1,444

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