FIN Question 10

Chilson Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows:

Direct materials used	$ 3,500
Direct labor hours worked	300
Machine hours used	400
Direct labor rate per hour	$ 16
Predetermined overhead rate based on machine hours	$ 18

What is the total manufacturing cost of Job 612?

		$4,800
		$7,200
		$4,200
		$15,500