Russo Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1887), as summarized below:Job Number:1887 Date Started: 4/17/20x8 Date Completed: 4/29/20x8 Description:Pecan kitchen cabinets AppliedDirect MaterialsDirect LaborManufacturing OverheadReq. NoAmountTicketHours AmountHoursRateAmount385$400 12818 $396 391 325 13029 696 395 250 13315 390 401 415 Total$1,390 Total62 $1,482 Cost Summary Direct Material Cost$1,390 Direct Labor Cost 1,482 Applied Manufacturing Overhead ? Total Cost ? Russo applies overhead to jobs at a rate of $18 per direct labor
hour. a. How much overhead would be applied to Job #1887? b. What is the total cost of Job #1887?
What will be an ideal response?
a. $1,116
b. $3,988
To apply manufacturing overhead, multiply the predetermined overhead rate ($18 per direct labor hour) by the actual value of the allocation base (62 direct labor hours), (62 hours × $18 per direct labor hour = $1,116). The total cost of the job is the sum of direct materials ($1,390), direct labor ($1,482), and applied manufacturing overhead ($1,116). ($3,988 = $1,390 + $1,482 + $1,116).
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