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Dotsero technology, inc., has a job-order costing system. the company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. the predetermined overhead rate in department a is based on machine-hours, and the rate in department b is based on direct labor hours. at the beginning of the most recent year, the company's management made the following estimates for the year.
dept. a dept. b
machine-hours. . . . . . . . 30,000 60,000
direct labor-hours. . . . . . .70,000 20,000
manufacturing overhead cost. . $420,000 $600,000
job 243 entered into production on april 1 and was completed on may 12. the company's actual cost records show the following information about the job.
dept. a dept. b
machine-hours. . . . . . . . . . 250 60
direct labor-hours. . . . . . . . 70 120
direct materials cost. . . . . . . . $840 $1,100
direct labor cost. . . . . . . . . $610 $880
compute the total manufacturing cost of job 243. note: "total manufacturing cost" is the sum of direct materials, direct labor, and applied manufacturing overhead cost in both department a and department b.
$11,170
$10,240
$7,100
$5,580
$10,530
$4,950
$7,770
$10,630
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