Question

Chief 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 $1,550,000, variable manufacturing overhead of $6.00 per labor hour, and 50,000 labor hours. The following data are available for Job 915, which was recently completed: Total machine 665 hours Direct $21,045 materials cost Total direct 615 labor hours Direct labor $26 per hour rate What is the total job cost for Job 915? O $59.790 $56,100 O $45,690 O $49.950 None of the above

Answer 1

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Option A $59,790 is the correct answer.

A B D E 1 2 Amount 3 4 5 6 Calculation of total Job cost Calculation Direct Materials Direct labor 615 labour hours * 26 per hour Variable overhead 615 labour hours *6 per hour Fixed manufacturing overhead Total 1550000/Total 50000 labor hours * 615 labor hours Total Job cost 21045 15990 3690 19065 7 59790 8