Question
Company reported the following information related to Job 101. Job 101 Units 500 Direct materials $10,000 Direct labor $2,000 Direct labor hours 100 Overhead is
Company reported the following information related to Job 101.
Job 101 | |
Units | 500 |
Direct materials | $10,000 |
Direct labor | $2,000 |
Direct labor hours | 100 |
Overhead is applied at rate of $10 per direct labor hour.
Quality inspection showed 10 of the 500 units were defective. The units had to be reworked requiring additional direct materials of $140 and direct labor of $60 (3 hours). The rework is considered normal spoilage.
Determine the total cost of Job 101.
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Step 11 Answer Determination of total cost of Job 101 Direct material Direct labor Ove...
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
