QUESTION 6 ARon Companys predetermined overhead rate is 400

QUESTION 6 A-Ron Company\'s predetermined overhead rate is $4.00 per direct labor hour and its direct labor wage rate is $16.00 per hour. The following information pertains to Job #A101: Direct materials $550 Direct labor What is the total manufacturing cost assigned to Job #1017 $640 O $1,350 O $1.254 $1,210 $1.190

Solution

Total direct labor hours=($640/$16)=40 hours

Hence total overhead=(40*$4 per direct labor hour)=$160

Hence total manufacturing cost=Direct materials+Direct labor+Total overhead

=(550+640+160)

=$1350.