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Bowen’s HVAC installs heating and cooling systems in commercial buildings. In August, Bowen started and completed two jobs, Job 1248 and Job 1249. The job cost sheet for Job 1248 showed $15,000 of direct materials and 175 direct labor hours. The job cost sheet for Job 1249 showed $9,500 of direct materials and 80 direct labor hours. Overhead is applied at $15 per direct labor hour. The employees who worked on these two jobs were paid $25 per hour. What is the total cost for each of these two jobs for August?

Respuesta :

Answer:

C. Job 1248, $22,000; Job 1249, $12,700

Explanation:

The computation of the total cost in the month of August is shown below:

Particulars                     Job 1248          Job1249

A      Direct Material        $15,000           $9,500

B        Labour Hrs                175                     80

C Labour rate                  $25                    $25

D Labour cost (B ×C)      $4,375              $2,000

E Overhead Rate              $15                     $15

F Overhead Cost (B ×E)    $2,625           $1,200

G Total Cost (A+C+F)        $22,000         $12,700

We simply added the direct material, labor cost and the overhead cost to determine the total cost and the same is to be considered

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