Question

Bolander Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour 70,000 $294,000 $ 2.30 Recently, Job M825 was completed with the following characteristics: 20 Number of units in the job Total machine-hours Direct materials Direct labor cost 80 $ 665 $1,840 The total job cost for Job M825 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,185 $2,360 $3,025 $2,505

Answer 1

1
Predetermined overhead rate	6.50	=2.3+(294000/70000)
Direct materials	665
Direct labor cost	1840
Overhead applied	520	=80*6.50
Total job cost for Job M825	3025
Option C $3,025 is correct
2
Direct materials	3044
Direct labor cost	690	=46*15
Overhead applied	1352	=104*13
Total job cost for Job	5086
Option B $5,086 is correct