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Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used.

Required:
What is the total manufacturing cost of Job 651?

Respuesta :

Answer:

The right answer is "$14,496".

Explanation:

The given values are:

Direct material cost,

= $7700

Labor hours,

= 178

Wage rate,

= $22 per hour

Machine hours,

= 90

Predetermined overhead rate per machine,

= $32

Now,

The direct labors cost will be:

= [tex]Labor \ hours\times wage \ rate[/tex]

= [tex]178\times 22[/tex]

= [tex]3,916[/tex] ($)

Mfg. overhead costs will be:

= [tex]Machine \ hours\times Predetermined \ overhead \ rate[/tex]

= [tex]90\times 32[/tex]

= [tex]2,880[/tex] ($)

So,

The total manufacturing cost will be:

= [tex]7700+3916+2880[/tex]

= [tex]14,496[/tex] ($)

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