Question

Spang Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 20,000
Total fixed manufacturing overhead cost $ 176,000
Variable manufacturing overhead per machine-hour $ 2.20
Recently, Job P505 was completed with the following characteristics:
Total machine-hours 200 Direct materials $ 540
Direct labor cost $ 7,200
The total job cost for Job P505 is closest to:
A) $9,400
B) $9,940
C) $7,740
D) $2,740

Answer 1

Answer:

Total Job cost is calculated by adding Direct material, direct labour and Applied overhead. A) Is the closest answer.

Explanation:

Total Job costing is a cost designation technique utilized by organizations that make custom items. Envision a bureau creator who makes custom cupboards for homes. Every bureau is custom constructed dependent on estimations made inside the client's home.

All employments require various measures of material, work, and overhead. Accordingly, each activity has a special complete expense.  Direct expenses are anything but difficult to allot to occupations.

It is anything but difficult to compute the all out expense of direct materials dependent on the materials utilized in the activity. Organizations use employment cost sheets to record the expense of materials utilized at work.