Global Manufacturing Inc. uses normal costing during the year to allocate manufacturing overhead to jobs in...

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Global Manufacturing Inc. uses normal costing during the year to allocate manufacturing overhead to jobs in a job costing sys

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Answer 1

Answer #1

Manufacturing overhead allocated is $3400.

The manufacturing overheads are underallocated by 10%. So the given allocated overheads are 90%.

So Actual overheads will be $3400/90% = $3778.

So total cost for the Job 117 will be cost of direct material + cost of direct labour + actual manufacturing overheads

It will be $2600 + $3900 +$3778 = $10278. It comes closest to $10290

So the answer is option A i.e. $10290

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Answer 2

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