Gill Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

Gill Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $820,000.In June,Gill completed Job 511.The details of Job 511 are shown below.(Round to 2 decimal places.) $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 26,500 \\\hline \text { Direct labor cost } & \$ 10,000 \\\hline \text { Direct labor hours } & 300 \text { hours } \\\hline \text { Units of product produced } & 200 \text { units } \\\hline\end{array}$$
How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

A) $36,884
B) $49,300
C) $70,420
D) $36,756

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free