Moran Company Uses a Job Order Cost System and Has

question 72

Multiple Choice

Moran Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost,based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000.Job No.1 was charged with direct materials of $36,000 and with overhead of $27,000.What is the total cost of Job No.1?

• A)$64,000
• B)$81,000
• C)$91,000
• D)Cannot be determined without additional information.

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