Alpha Company Manufactures Customized Motors on a Job-Order Basis After Inspection, 2 Units Required Rework, Comprising 8 Additional Direct

question 32

Multiple Choice

Alpha Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
$\begin{array}{lr}\text { Direct materials } & \$ 3,000 \\\text { Direct labour }(\$ 10 / \mathrm{hr}) & 1,000 \\\text { Overhead }(150 \% \text { DL } \$) & 1,500\end{array}$
After inspection, 2 units required rework, comprising 8 additional direct labour hours and $60 of materials.
-Refer to the figure.If the spoilage was considered normal,what is the cost of job 492?

• A)$3,000
• B)$5,500
• C)$5,640
• D)$5,760

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