# 4

The following information was incurred by a company :

a. Factory overhead costs are applied to jobs at the predetermined rate of $40 per labor hour.

job B-1 incurred 1500 labor-hours; job B-2 incurred 2,200 labor-hours.

b. Factory utilities, factory depreciation, and factory insurance incurred is summarized by these factory vouchers, invoices and cost memos:

utilities $ 22,000

Depreciation $35,000

Insurance $10,000

c. The company purchased the following direct materials and indirect materials

Material X $30,000

Material Y $40.000

Indirect material $10,000

d. Direct materials and indirect materials used are as follows:

Job B-1 Job-2 Total

Material X $15,000 $10,000 $25,000

Material Y $22,000 $15,000 $ 37,000

Indirect material $8,000

e. Factory labor incurred for the two jobs and indirect labor are as follows:

Job B-1 $6,000

Job B-2 $7,000

Indirect labor $,3000

What is the cost of Job B-1?

$103,000

$104,385

$106,000

$185,400