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Total cost of a job

43. Custom Carpeting reported the following data for its most recent fiscal year's manufacturing operations:

Direct labor hours

6,000

Direct labor cost

$120,000

Machine hours

4,000

Material cost

$800,000

Manufacturing overhead

$600,000

Manufacturing overhead is allocated to jobs based on direct labor hours. One of the company's custom jobs used $3,000 of direct materials, $2,000 of direct labor (10 hours at $20 per hour), and 6 machine hours. What was the total cost of this job?

A) $5,120

B) $5,600

C) $5,900

D) $6,000

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The predetermined overhead rate = Estimated overhead/estimated ...

Solution Summary

The solution explains how to calculate the total cost of a job

$2.19