Small Manufacturing Company has a standard overhead rate of $42 per hour. The labor rate is $20 per hour. Overhead is applied based on direct labor hours. Jobs B-1 and B-2 were completed during the month of March. Small incurred 140 hours of indirect labor during the month

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07-07-2021
Mathematics

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Small Manufacturing Company has a standard overhead rate of $42 per hour. The labor rate is $20 per hour. Overhead is applied based on direct labor hours. Jobs B-1 and B-2 were completed during the month of March. Small incurred 140 hours of indirect labor during the month

Sagot :

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AbsorbingMan AbsorbingMan · Answer 1 · 2021-07-09T03:11:17-04:00

The question is incomplete. The complete question is :

Small Manufacturing Company has a standard overhead rate of $42 per hour. The labor rate is $15 per hour. Overhead is applied based on direct labor hours. Jobs B-1 and B-2 were completed during the month of March. Small incurred 140 hours of indirect labor during the month. Job B-1 used 82 direct labor hours and $3650 worth of direct material used. Job B-2 used 130 direct labor hours and $2,900 worth of direct material. What is the total cost of job B-2? Round to closest whole dollar (no cents).

Solution :

Particulars Job B-2

Direct material used $ 2,900

Add : Direct labor cost (130 hours x $15) $ 1,950

Add : overhead cost (130 hours x $ 42) $ 5,460

Total Cost of Job B-2 $ 10,310

Therefore, the total cost of the Job B-2 is $ 10,310.

Sagot :

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