Alpha Company manufactures customized motors on a job-order basis. Job 492 is an

Question

Alpha Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
            direct materials            $3,000
            direct labor ($10/hr)        1,000
            overhead (150% DL$)     1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.

Refer to Figure 5-9. If the spoilage was considered normal, what is the cost of job 492? Select one: a. $5,640 b. $5,760 c. $5,500 d. $3,000 Alpha Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
            direct materials            $3,000
            direct labor ($10/hr)        1,000
            overhead (150% DL$)     1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.

Refer to Figure 5-9. If the spoilage was considered normal, what is the cost of job 492? Select one: a. $5,640 b. $5,760 c. $5,500 d. $3,000 Select one: a. $5,640 b. $5,760 c. $5,500 d. $3,000 a. $5,640 b. $5,760 c. $5,500 d. $3,000

Explanation / Answer

Total cost of Job 492 = DM + DL + Overhead + Rework cost

= 3000 + 1000 + (1000x150%)+((8x10)+60) = 5640

so, answer is

a. $5,640

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