Question 3 Job 819 was started in October. During the month, direct materials fo

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Question 3

Job 819 was started in October. During the month, direct materials for the job cost $4,000. Direct labor hours of 200 were worked. (The direct labor pay rate is $20 per hour.) Manufacturing overhead is applied at $15 per direct labor hour. What was the total cost of Job 819 in October?

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Question 4

Nguyen Engineering uses project costing to assess the profitabilty of their projects. They should notinclude which of the following costs in their estimate of overhead?

Explanation / Answer

Question 3

Total cost = Direct materials + Direct labour + Manufacturing overhead

Total cost = $4,000 + (200hours*$20/hour) + (200hours*$15/hour)

Total cost = $4,000+ $4,000 + $3,000

Total cost = $11,000

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