Question
Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a
Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows:
Direct materials cost..................................................$6,220
Direct labor cost...........................................................$900
Direct labor hours..................................................32 hours
Units of product produced:....................................250 kilos
How much was the total job cost?
A) $8,364
B) $180
C) $7,120
D) $7,300
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