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Assume Job​ #101 incurred Direct materials cost of​ $32,000 and Direct labor costs of​ $46,400. Actual direct labor hours were​ 5,800 and actual machine hours were​ 2,400. What is the total product cost for Job​ #101?

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jepessoa

Answer:

$196,000

Explanation:

Predetermined overhead rate based on direct labor hours = $1,107,400 / 22,600 direct labor hours = $49 per direct labor hour

Total costs for Job #101 = direct materials + direct labor hours + predetermined overhead = $32,000 + $46,400 + (2,400 hours x $49 per hour) = $32,000 + $46,400 + $117,600 = $196,000

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