Factory

$9,000
Administrative offices
1,900
Indirect materials used
$14,400
The total cost of Job X is:
A.
$152,400.

B.
$128,200.

C.
$151,900.

D.
$129,600.

E.
$140,800.
Overhead application rate = $695,400 ÷ 114,000 = $6.10 per DL-hourMaterials + Labor
+ Applied OH + Beginning WIP = Total cost of Job X$54,500 + (5,000 × $6) + (5,000 ×
$6.10) + $37,400 = $152,400
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current
year, estimated direct labor hours were 114,000 and estimated factory overhead was
$695,400. The following information was for September. Job X was completed during
September, while Job Y was started but not finished.
September 1, inventories:

Materials
$9,000
Work-in-process (All Job X)
37,400
Finished goods
80,400
Materials purchases
$125,000
Direct materials requisitioned:

Job X
$54,500
Job Y
40,000
Direct labor hours:
Job X
5,000
Job Y
4,500
Labor costs incurred:

Direct labor ($6.00 per hour)

$57,000
Indirect labor
16,200
Factory supervisory salaries
7,200
Rental costs:

Factory
$8,400
Administrative offices
2,200
Total equipment depreciation costs:

Factory
$9,000
Administrative offices
1,900
Indirect materials used
$14,400
The total factory overhead applied during September is:
A.
$59,300.

B.
$57,950.

C.
$57,848.

D.
$56,120.

E.
$57,710.