[lashann]

:confused:Having more trouble: Determine the total cost charged to job 101 in September


Machining Dept Finishing Dept
Direct materials cost $8,000 $1,400
Direct labor cost $250 $800
Direct labor hours 7 35
Machine hours 50 6

With the information given above, I decided to add the 8,000 + 250 = 8250, which will give me the total cost for the machining dept. Am I suppose to add the direct labor hours and machine hours which total 57 and divide that into the 8,250, to get the total cost. If I am wrong, please explain to me and give me an example of how to do this. :confused:

[rehmanvohra]

Total costs for job 101 will be calculated as follows:
Direct Materials
-Machining department 8000
-Finishing department 1400
Total direct materials 9400
Direct labor
-Machining department 250
-Finishing department 800
Total direct labor 1050
Overheads
-Machining 50.6 hrs x overhead rate
-Finishing 7.35 labor hours x overhead rate

Adding together you get the costs charged to job 101

Your question does not mention the overhead rates, hence refer to the question and solve it.