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A company uses a predetermined overhead rate based on direct labor hours. At the beginning of the year, it estimated that 40,000 direct labor hours
A company uses a predetermined overhead rate based on direct labor hours. At the beginning of the year, it estimated that 40,000 direct labor hours would be required for the year's estimated level of production. The company also estimated overhead costs for the coming year at $800,000. Direct labor costs $25 per hour. During the current period, the company completed Job 27 (which consisted of 400 units), incurring direct materials costs of $30,000 and direct labor costs of $10,000 and utilizing 400 hours of direct labor. What is the total cost of Job 27? a. $30,000 O b. $48,000 oc. $58,000 O d. $38,000 O e. $40,000
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