Question

1. Assume the job cost sheet for Job X shows that (1) it used 18 direct labor-hours, (2) it incurred direct materials charges of $500, and (3) its total job cost is $1,335. If the plantwide predetermined overhead rate per direct labor-hour is $13.00, then how much direct labor cost was charged to Job X?

2. At the beginning of the year, a company estimated that 20,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $140,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.50 per direct labor-hour.

Assume that Job X used $200 in direct materials, $288 of direct labor, and 25 direct labor-hours. What is the total job cost for Job X?

Answer 1

1.)	Total Job Cost	$ 1,335
	Direct materials	$ 500
	Direct labor cost & Overhead cost	$ 835	( 1,335 - 500 )
	Direct labor Cost charged to Job X	$ 601	( 835 - ( 18 x 13 ) )
2.)		Amount in $
	Direct Materials	200.00
	Direct labor	288.00
	Variable manufacturing Overhead ( 25 x 1.50 )	37.50
	Fixed manufacturing overhead ( 140,000 / 20,000 ) x 25	175.00
	Total job cost for Job X	700.50