Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours

Selected data for costs incurred for Job 798 are as follows:

Direct materials used $4,200
Direct labor hours worked 280
Machine hours used 425
Direct labor rate per hour $18
Predetermined overhead rate based on machine hours $20

What is the total manufacturing cost of Job 798?
A) $17,740
B) $5,040
C) $8,500
D) $4,905

A
Explanation: A) $4,200 + ($18 × 280 ) + ($20 × 425 ) = $17,740

Business

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