The following data have been recorded for recently completed

The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be:

Solution

Total direct labor=($14*32)=$448

Total overhead=($15 per machine hours*175 machine hours)=$2625

Total cost=Direct materials+Total direct labor+Total overhead

=(448+2625+2039)

=$5112.