Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour.

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Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000. What would be recorded as the cost of job WR53?

Darshita Changed status to publish August 29, 2020
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Answer:

Predetermined overhead rate

=760,000 / 20,000 hour

=38 per hour

Direct material 200
Direct labor (15 x 10 ) 150
Predetermied overhead  (38 x 10 ) 380
Total Cost 730

So Answer  is total Cost= 730

 

Darshita Changed status to publish August 29, 2020

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