8) On May 21, 2017, Bravo Zulu worked 5 hours on Job A-1, and 3 hours on general

Question

8) On May 21, 2017, Bravo Zulu worked 5 hours on Job A-1, and 3 hours on general "overhead activities." Bravo Zulu is paid $15 per hour. Overhead is applied based on $6 per direct labor hour. Additionally, on May 21 Job A-1 requisitioned and entered into production $80 of direct material. On May 21, Bravo Zulu, while working on Job A-1 used $7 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on May 21?

Explanation / Answer

Direct materials 80 Direct labor 75 =5*15 Factory overhead 30 =5*6 Total cost in Work in Process for Job A-1 185

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