Question

Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows:

Direct materials cost $6,220

Direct labor cost $900

Direct labor hours 32 hours

Units of product produced: 250 kilos

How much was the total job cost?

A) $8,364

B) $180

C) $7,120

D) $7,300

Answer

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