Job 731 Was Recently Completed The Company Applies Manufacturing Overhead on the Basis of Machine-Hours

question 51

Multiple Choice

Job 731 was recently completed. The following data have been recorded on its job cost sheet:
$$\begin{array} { ll } \text { Direct materials } & \$ 2,391 \\\text { Direct labor-hours } & 69 \text { labor-hours } \\\text { Direct labor wage rate } & \$ 13 \text {per labor-hour } \\\text { Machine-hours } & 129 \text { machine-hours }\end{array}$$
The company 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 731 would be:

• A) $3,288.
• B) $5,094.
• C) $4,254.
• D) $2,418.

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Definitions:

Everyday Items

Common products or goods used regularly for daily activities or needs.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on quality, price, and brand.

Differentiated

Pertains to a marketing strategy where a company offers unique features, benefits, or product variations to stand out from competitors.

Competing

Involves entities or individuals striving against each other to achieve a goal that cannot be shared.