The total job cost for Job A578 is closest to:

A) $11,065
B) $10,350
C) $2,065
D) $9,715

Question

The total job cost for Job A578 is closest to:A) $11,065B) $10,350C) $2,065D) $9,715

Vishal Kumar · Accepted Answer

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)= $160,000 + ($3.40 per direct labor-hour × 80,000 direct labor-hours)= $160,000 + $272,000 = $432,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $432,000 ÷ 80,000 direct labor-hours = $5.40 per direct labor-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $5.40 per direct labor-hour × 250 direct labor-hours = $1,350   Reference: CH02-Ref10Spang Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on the following data:   Recently, Job P505 was completed with the following characteristics:

The total job cost for Job A578 is closest to:

A) $11,065
B) $10,350
C) $2,065
D) $9,715

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