Branin Corporation uses a job-order costing system with a single plantwide prede

ID: 2437447 • Letter: B

Question

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: (Round your intermediate calculations to 2 decimal places.)

Total direct labor-hours 250 Direct materials $ 715 Direct labor cost $ 9,000

Explanation / Answer

Answer:

The total job cost for Job A578 is = $11,065

Working notes for the above answer is as under

First we determine predetermined overhead rate a sunder

=(160,000/80,000)+3.40

=$2 +$3.40

=$5.40

Direct material

715

Ditect labor

9000

Overhead cost (5.4*250)

1350

The total job cost for Job A578

11065