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Griffin Manufacturing: Cost of Job #45

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Griffin Manufacturing uses job order costing to measure and track the costs incurred for specific jobs. While most of jobs do require some machine time, Griffin has determined that direct labor cost drives its manufacturing overhead costs. During the month of August, the following data were available for job #45:

Direct labor = 200 hours at $15/ hour
Direct materials= 90 gallons at $6/ gallon
Machine hours used = 100 hours

If total overhead costs during the month totaled $4,000 when a total of $20,000 in direct labor costs were incurred, what will be the total manufacturing cost of Job #45?

a) $4,140
b) $3,580
c) $7,540
d) $3,540.

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This solution provides the correct answer with explanation to the Griffin Manufacturing total manufacturing cost question listed. Includes 2 references.

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200 x 15 = 3,000

90 gallons x 6 = 540

= 3,000 + 540 = 3,540

+ 4,000 / 100 = 40

= 3540 + 40 = 3580

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