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Mayflower Corporation manufactures products on a job-order basis. The job cost s

ID: 2444736 • Letter: M

Question

Mayflower Corporation manufactures products on a job-order basis. The job cost sheet for Job #656 shows the following for September:


At the end of September, what total cost appears on the job cost sheet for Job #656?

A) $5,765

B) $6,765

C) $8,325

D) $5,725

Wyman Company is a graphic design shop that produces jobs to customer specifications. During January, Job #3051 was worked on and the following information is available:


What was the total cost of Job #3051 for January?

A) $3,052
B) $2,713
C) $2,812
D) $2,770

Direct material $5,000 Direct labor (100 hours @ $7.25) $725 Machine hours incurred 40 Predetermined overhead rate per machine hour $26

Explanation / Answer

Total cost of Job # 656

Direct Material           $ 5000

Direct labor                               $ 725

Overhead ( $26 /machine hour x 40 machine hours )     $ 1040

                                                                                ----------

Total cost of Job # 656                                               $6765

                                                                               -----------

The answer is , therefore, (B) $6765.

Total cost of Job 3051

Direct Material used                                         $2500

Direct labor ( $7/labour hour x 15 hours )                              $ 105

Overhead ($18 /machine hour x 6 machine hours )                 $ 108

                                                                                      ------------

                                                                                         $2713

                                                                                      --------------

The answer is ,therefore, is (B) $2713