question archive Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost
Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost
Subject:BusinessPrice:2.87 Bought7
Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 20% of the direct labor cost. In the month of Jun Venus completed Job 13C and its details are as follows:
Direct materials cost $6,680
Direct labor cost $23,000
Direct labor hours34 hours
Units of product produced 250
What is the total cost incurred for Job 13C?
A. $27,600
B. $31,016
C. $34,280
D. $11.280
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Answer:
| Direct Materials Cost | $ 6,680 |
| Direct Labor Cost | $ 23,000 |
| Manufacturing Overhead ( 20% * $ 23,000) | $ 4,600 |
| Total Cost Incurred | $ 34,280 |
Hence the correct answer is C. $ 34,280
