Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized below: Job Number:1478 Date Started: 4/07/20x8 Date Completed: 4/22/20x8 Description:Cherry kitchen cabinets AppliedDirect MaterialsDirect LaborManufacturing OverheadReq. NoAmountTicketHours AmountHoursRateAmount385$300 12816 $288 391 225 13023 426 395 150 13312 264 401 215 Total$890 Total51 $978 Cost Summary Direct Material Cost$890 Direct Labor Cost 978 Applied Manufacturing Overhead ? Total Cost ? Green Cabinets applies overhead to jobs at a rate of $12 per direct labor
hour. a. How much overhead would be applied to Job #1478? b. What is the total cost of Job #1478?
What will be an ideal response?
a. $612
b. $2,480
To apply manufacturing overhead, multiply the predetermined overhead rate ($12) by the actual value of the allocation base (51 direct labor hours), (51 hours × $12 per direct labor hour = $612). The total cost of the job is the sum of direct materials ($890), direct labor ($978), and applied manufacturing overhead ($612), ($2,480 = $890 + $978 + $612).
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