Question
I need help solving the problem below. I was able to compute the predetermined overhead rate of $9.50 and obtain the amount of overhead applied
I need help solving the problem below. I was able to compute the predetermined overhead rate of $9.50 and obtain the amount of overhead applied of $190 but can't seem to solve for the total job cost.
A corporation uses a job-order costing system with apredetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:
Total estimated direct labor-hours 50,000
Total estimated fixed manufacturing overhead cost $285,000
Estimated variable manufacturing overhead per direct labor-hour $ 3.80
Recently, Job P123 was completed with the following characteristics:
Total actual direct labor-hours 20
Direct materials $710
Direct labor cost $500
The total job cost for Job P123 is closest to:(Round your intermediate calculations to 2 decimal places.)
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