A-to-Z Industries has two production departments, ABC and XYZ which uses a job-order cost system. To determine manufacturing costs, the company applies manufacturing overhead to production orders based on direct labor cost using the blanket rate predetermined at the beginning of the year based on the annual budget. The 20xx budget for the two departments was as follows:
Actual materials and labor costs of JOB 678 during 20xx were as follows:
Direct materials 22,500
Direct labor - ABC 7,200
Direct labor - XYZ10,800
What was the total manufacturing cost associated with Job No.678 for 20xx?
Answer- d. 67,500.
You have not use any currency symbol. For calculation purpose I have taken currency as dollar ($). If you have any other currency you can simply replace the currency only, the calculation will be same.
Get Answers For Free
Most questions answered within 1 hours.