The total job cost for Job P951 is closest to:

A) $4,540
B) $4,755
C) $1,295
D) $5,295

Question

The total job cost for Job P951 is closest to:A) $4,540B) $4,755C) $1,295D) $5,295

Alyssa Swanson · Accepted Answer

Final Answer : D, 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)= $96,000 + ($3.00 per direct labor-hour × 40,000 direct labor-hours)= $96,000 + $120,000 = $216,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $216,000 ÷ 40,000 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 × 100 direct labor-hours = $540

The total job cost for Job P951 is closest to:

A) $4,540
B) $4,755
C) $1,295
D) $5,295

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