The Following Data Have Been Recorded for Recently Completed Job

question 83

Multiple Choice

The following data have been recorded for recently completed Job 674 on its job cost sheet.Direct materials cost was $2,039.A total of 32 direct labor-hours and 175 machine-hours were worked on the job.The direct labor wage rate is $14 per labor-hour.The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $15 per machine-hour.The total cost for the job on its job cost sheet would be:

• A)$2,967
• B)$2,487
• C)$2,068
• D)$5,112

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Definitions:

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.

Budgeted Cost

An estimated cost anticipated for a specified period of time or activity.

Raw Materials Purchases

The total cost or volume of raw materials bought by a company for use in production over a specific period of time.