Answer:
Total cost= $9,600
Explanation:
Giving the following information:
Total direct labor-hours 78,000
Total fixed manufacturing overhead cost $ 460,200
Variable manufacturing overhead per direct labor-hour $ 5.00
Job P951:
Total direct labor-hours 100
Direct materials $ 710
Direct labor cost $ 7,800
First, we need to determine the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (460,200/78,000) + 5= $10.9 per direct labor hour.
Now, we can calculate the total cost of the job:
Total cost= 710 + 7,800 + (100*10.9)
Total cost= $9,600
