The Teal Company Manufactures Customized Fabric Yarns on a Job-Order

question 125

Multiple Choice

The Teal Company manufactures customized fabric yarns on a job-order basis. Job 450 is an order for 150 units. It requires the following: $$\begin{array} { l r } \text { Direct materials } & \$ 4,000 \\\text { Direct lab or } ( \$ 10 / \mathrm { hr } ) & 2,000 \\\text { Overhead } ( 150 \text { percent of direct labor cost } ) & 3,000\end{array}$$
After inspection, 3 units required rework which required 6 additional direct labor hours and $50 of materials.
If the spoilage was considered normal, what is the cost of job 450?

• A)$9,000
• B)$5,000
• C)$7,000
• D)$11,000