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    Applying Overhead Cost

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    A company is currently working two jobs. The job order cost sheets for job 101 and job 102 showed the following information:
    Job 101 Job 102
    Direct materials $12,000 $15,000
    Direct labor 24,000 45,000

    If overhead is applied to jobs at $.80 per direct labor dollar, the total manufacturing cost for the two jobs would be: a) $96,000 b)151,200 c)55,200 d)162,000.

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    Solution Summary

    Solution explains how to calculate total manufacturing cost for two jobs.