Question

Celina's products uses a plant wide predetermined overhead rate of $10 per direct labor hours. Direct materials and direct labor associated with the job X23 are $4000 and $1200 respectively. If job X23 used 100 direct labor hours, what is the total cost assigned to this job.

Answer 1

Solution:
Job X23
	Amount in $
Direct Materials	4,000
Add: Direct labor	1,200
Add: Applied overhead	1,000	( 100 x 10 )
Total Cost assigned	6,200