The total job cost for Job M598 is closest to:

A) $12,270
B) $9,645
C) $3,915
D) $12,915

Question

The total job cost for Job M598 is closest to:A) $12,270B) $9,645C) $3,915D) $12,915

Jasrah Parker · Accepted Answer

Final Answer : D, Explanation :  According to the chart, the total job cost for Job M598 is $12,900. The closest option is D, which is $12,915. 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)= $624,000 + ($3.10 per machine-hour × 80,000 machine-hours)= $624,000 + $248,000 = $872,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $872,000 ÷ 80,000 machine-hours = $10.90 per machine-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $10.90 per machine-hour × 300 machine-hours = $3,270

The total job cost for Job M598 is closest to:

A) $12,270
B) $9,645
C) $3,915
D) $12,915

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