The total job cost for Job K818 is closest to:

A) $1,675
B) $2,595
C) $1,195
D) $2,320

Question

The total job cost for Job K818 is closest to:A) $1,675B) $2,595C) $1,195D) $2,320

namandeep singh · Accepted Answer

Final Answer : B, Explanation :  We can calculate the total job cost by adding up the material cost, labor cost, and overhead cost.Total job cost = material cost + labor cost + overhead costFor Job K818,Material cost = $550Labor cost = $1,250Overhead cost = $795Total job cost = $550 + $1,250 + $795 = $2,595Therefore, the best choice is B. 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)= $162,000 + ($2.80 per direct labor-hour × 60,000 direct labor-hours)= $162,000 + $168,000 = $330,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $330,000 ÷ 60,000 direct labor-hours = $5.50 per direct labor-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $5.50 per direct labor-hour × 50 direct labor-hours = $275

The total job cost for Job K818 is closest to:

A) $1,675
B) $2,595
C) $1,195
D) $2,320

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