Branin Corporation Uses a Job-Order Costing System with a Single

question 169

Multiple Choice

Branin 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 total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor-hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed:

-The total job cost for Job A578 is closest to:

• A) $11,065
• B) $10,350
• C) $2,065
• D) $9,715

---

Definitions:

Direct

Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur.

Manufacturing Overhead

Expenses related to the manufacturing process that cannot be directly tied back to the production of specific goods, such as factory maintenance and rent.