Chilson Company manufactures custom engines for use in the lawn and garden equipment industry.
The company allocates manufacturing overhead based on machine hours.
Selected data for costs incurred for Job 612 are as follows:
|Direct materials used||$ 3,500|
|Direct labor hours worked||300|
|Machine hours used||400|
|Direct labor rate per hour||$ 16|
Predetermined overhead rate based on machine hours $18.
What is the total manufacturing cost of Job 612?
Total Manufacturing Cost:
The total manufacturing cost is the cost incurred to put the resources into the production. The manufacturing cost includes direct materials, direct labor and manufacturing overhead.
Answer and Explanation: 1
Answer: d. $15,500
Let us compute the applied overhead cost. We multiply the machine hours used (400 machine hours) by the predetermined overhead...
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fromChapter 5 / Lesson 2
Job order costing systems organize costs according to units or products, common in service and production companies. Learn the importance of journals in recording manufacturing costs and how period costs are included as well.