Badour Inc. is a job-order manufacturer. The company uses a predetermined overhe

Question

Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 121,300 and estimated factory overhead was $734,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $9,800 Work-in-process (All Job X) $40,900 Finished goods $85,900 Materials purchases $134,200 Direct materials requisitioned: Job X $58,700 Job Y $43,200 Direct labor hours: Job X 5,400 Job Y 4,900 Labor cost incurred: Direct labor $6.60 per hour $67,980 Indirect labor $17,500 Factory supervisory salaries $7,700 Rental costs Factory $9,100 Administrative offices $2,400 Total equipment depreciation costs: Factory $9,700 Administrative offices $2,000 Indirect materials used $15,400 The total cost of Job X is:   Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 121,300 and estimated factory overhead was $734,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $9,800 Work-in-process (All Job X) $40,900 Finished goods $85,900 Materials purchases $134,200 Direct materials requisitioned: Job X $58,700 Job Y $43,200 Direct labor hours: Job X 5,400 Job Y 4,900 Labor cost incurred: Direct labor $6.60 per hour $67,980 Indirect labor $17,500 Factory supervisory salaries $7,700 Rental costs Factory $9,100 Administrative offices $2,400 Total equipment depreciation costs: Factory $9,700 Administrative offices $2,000 Indirect materials used $15,400 The total cost of Job X is:  

Explanation / Answer

estimated factory overhead 734,400.00 estimated direct labor hours 121,300 predetermined overhead rate $6.05 per hour The total cost of Job X is:   Direct materials $58,700.00 Direct labor cost $35,640.00 (5400*6.60) Ovehead cost $32,670.00 (5400*6.05) total cost of Job X= $127,010.00

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