The total job cost for Job K332 is closest to:

A) $5,775
B) $6,132
C) $6,587
D) $1,267

Question

The total job cost for Job K332 is closest to:A) $5,775B) $6,132C) $6,587D) $1,267

Pearce Dennen · 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)= $33,000 + ($2.50 per direct labor-hour × 10,000 direct labor-hours)= $33,000 + $25,000 = $58,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $58,000 ÷ 10,000 direct labor-hours = $5.80 per direct labor-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $5.80 per direct labor-hour × 140 direct labor-hours = $812

The total job cost for Job K332 is closest to:

A) $5,775
B) $6,132
C) $6,587
D) $1,267

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