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At the beginning of the year, a company estimated a predetermined plantwide overhead rate of $8.50 per machine-hour. Job X used 16 machine-hours and it was charged $200 and $288 for direct materials and direct labor, respectively. What is the total job cost for Job X?

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Answer:

Total cost= $624

Explanation:

Giving the following information:

Predetermined plantwide overhead rate= $8.50 per machine hour.

Job X:

Number of machine hours= 16

Direct materials= $200

Direct labor= $288

First, we need to allocate overhead to Job X:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 8.5*16

Allocated MOH= $136

Now, the total cost:

Total cost= 136 + 200 + 288

Total cost= $624

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