Job 593 was recently completed. the following data have been recorded on its job cost sheet:

direct materials $2,461
direct labor-hours 74 labor-hours
direct labor wage rate $18 per labor-hour
machine-hours 137 machine-hours

the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $19 per machine-hour. the total cost that would be recorded on the job cost sheet for job 593 would be:

(a) $3,720
(b) $3,793
(c) $7,236
(d) $6,396

JOB 593

Total cost of the job

Direct material                                2,461

Direct labour (74 hrs @ $18)           1,332

Overhead applied (137 hrs x $19)  2,603

Total cost of the job                       6,396

The correct answer is D

Explanation:

The total cost of the job is the aggregate of direct material cost, direct labour cost and overhead applied. Overhead applied is calculated as overhead application rate multiplied by actual machine hours.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

answer; to open a new transaction, the user should type the code/0 along with a new transaction code, when done with that the user should press enter to open the transaction; good luck;