Question

Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July, Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor hours to be worked Total actual manufacturing overhead costs incurred $13,000 $ 1.00 2,000 $12,800 Direct materials Direct labor cost Actual direct labor hours worked Job Y Job Z $13,000 $7,000 $21,000 $7,500 1,400 400 What is the total job cost for Job Z?

Answer 1

Answer What is the total job cost for JobZ? Direct materials $7,000 Direct labor costs $ 7,500 variable manufacturing overhead Chom $1 $ 400 Fixed manufacturing overhead (4.00 * $6.5) $ 2600 Total Job Cost for Job Z $17,500

Therefore, The total job cost for JobZ is $ 17,500. Working Notes :- O calculation of fixed manufacturing overhead for Jobz: Fixed manufactusing = Estimated fixed manufacturing y Actual direct Overhead Overhead Estimated direct labor hours labor hours Worked x 400 hours Fixed manufacturing overhead $ 13,000 2000 hours $6.5 x 400 hours $ 2,600.