Session Corporation uses a job-order costing system with a
single plantwide predetermined overhead rate based on direct
labor-hours. The company based its predetermined overhead rate for
the current year on the following data:
Recently, Job K913 was completed with the following
characteristics:
The total job cost for Job K913 is closest to:
A) $6,060
B) $2,115
C) $6,765
D) $5,355
|
Total direct labor-hours |
70,000 |
|
|
Total fixed manufacturing overhead cost |
$ |
511,000 |
|
Variable manufacturing overhead per direct labor-hour |
$ |
2.10 |
|
Total direct labor-hours |
150 |
|
|
Direct materials |
$ |
705 |
|
Direct labor cost |
$ |
4,650 |
A) $6,060
B) $2,115
C) $6,765
D) $5,355
