Question

Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 128,000 and estimated factory overhead was $960,000. The following information was for September. Job X was completed during September, while Job Y was started but not finished.

	September 1, inventories:
	Materials	$	10,500
	Work-in-process (All Job X)		38,800
	Finished goods		81,800
	Materials purchases	$	139,000
	Direct materials requisitioned:
	Job X	$	55,900
	Job Y		41,400
	Direct labor hours:
	Job X		6,400
	Job Y		5,900
	Labor costs incurred:
	Direct labor ($7.40 per hour)	$	91,020
	Indirect labor		17,600
	Factory supervisory salaries		8,600
	Rental costs:
	Factory	$	9,800
	Administrative offices		3,600
	Total equipment depreciation costs:
	Factory	$	10,500
	Administrative offices		3,300
	Indirect materials used	$	15,800

The total cost of Job X is:

Multiple Choice

• $190,060.

• $143,500.

• $171,500.

• $136,600.

• $176,220.

Answer 1

The answer has been presented in the supporting sheet. The correct answer is $190060. The answer has been presented in the supporting sheets with detailed explanation and formulas as well as with calculations. For detailed answers refer to the supporting sheets .