Question

Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor hours. The company has provided the following data concerning Job T498 which was recently completed: 40 80 Number of units in the job Total direct labor-hours Direct materials Direct labor cost $ 950 $2,720 The total job cost for Job T498 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Correct answer----------$4430

Working

(A)	Material used	$          950.00
(B)	Direct Labor cost	$       2,720.00
(C )	Applied Manufacturing Overheads	$          760.00
D-(A+B+C)	Total Cost	$       4,430.00

Applied overhead = (Fixed overhead rate + Variable overhead rate) x labor hours

Applied overhead =($7.10+2.40) x 80=$760

Fixed overhead rate = 497000/70000