Question
ABC company uses a predetermined rate based on direct labor hours to allocate the indirect costs. The job order cost sheet for Job 15-0300 shows
ABC company uses a predetermined rate based on direct labor hours to allocate the indirect costs. The job order cost sheet for Job 15-0300 shows the following for the month of June: direct materials requisitioned of $7,125 and direct labor of 69 hours at an average pay rate of $20 per hour. Predetermined overhead rate is $12 per direct labor hour. At the year end, the actual overhead was determined to be $10,000 and the actual direct labor hours used was 850 hours. What will be the total cost for Job 15-0300 in the month of June? Question 1 options: $34,325 $9,333 $18,705 $8,505
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