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Job 593 was recently completed. The following data have been recorded on its job cost sheet: The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine hour. The total cost that would be recorded on the job cost sheet for Job 593 would be: $6.705 $3, 219 $5, 249 $4, 255
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Question & Answer: Job 593 was recently completed. The following data have been recorded on its job cost sheet: The Corporat…..
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$6705 ,
Total cost = Direct material cost + direct labor wage + applied manufacturing overhead
= $3190 + [71 labor hours * $15 per labor-hour] + [175 machine hours * $14 per machine hour]
= $3190 + $1065 + $2450
= $6705
Note:- Predetermined overhead rate is on the basis of machine hours
