Jasper Carts Manufactures Custom Carts for a Variety of Uses

question 17

Multiple Choice

Jasper Carts manufactures custom carts for a variety of uses.The following data have been recorded for Job 651,which was recently completed.Direct materials used cost $7,200.There were 175 direct labor hours worked on this job at a direct labor wage rate of $22 per hour.There were 82 machine hours used on this job.The predetermined overhead rate is $30 per machine hour used.
What is the total manufacturing cost of Job 651?

• A)$3,850
• B)$2,460
• C)$13,510
• D)$7,457

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Definitions:

Holding Cost

The expenses associated with keeping inventory in stock, such as storage, insurance, and spoilage costs.

Economic Order Quantity

A formula used to determine the most cost-effective quantity to order, balancing ordering costs with holding costs.

EOQ

Economic Order Quantity, a formula used in inventory management to determine the optimal order size that minimizes total costs of inventory holding and ordering.

Ordering Cost

The expenses associated with placing an order for supplies or inventory, including costs related to paperwork, communication, and logistics.