Mno corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on the following data: total estimated direct labor-hours 50,000total estimated fixed manufacturing overhead cost $ 285,000estimated variable manufacturing overhead per direct labor-hour $ 3.80recently, job p123 was completed with the following characteristics: total actual direct labor-hours 20direct materials $ 710direct labor cost $ 500the total job cost for job p123 is closest to: (round your intermediate calculations to 2 decimal places.)

Total cost for Job P123 = $1,400

Explanation:

For Job P123 we have following information

Total labor hours = 20

Direct Materials = $710

Direct Labor cost = $500

Manufacturing Overhead cost = 20 hours X $3.8 per labor hour = $76

Fixed Manufacturing Overhead Cost Allocated to this job =

($285,000 / 50,000 ) X 20 hours = $114

The total cost for Job P123 = $710 + $500 + $76 + $114 = $1,400

Note: Fixed Manufacturing cost is allocated based on number of actual direct labor hours, as the entire activity of the organisation is not provided.

The total cost for Job P123 = $1,400

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