2.00 points Pigot Corporation uses job costing and has two production department

Question

2.00 points Pigot Corporation uses job costing and has two production departments, M and A Budgeted manufacturing costs for the year are as follows Direct materials Direct labor Factory overhead M Dept A $ 717,000 $117,000 217,000 834,000 651,000 417.000 The octual drect material and direct labor costs charged to Job. No. 432 during the year were as follows Direct matenal Direct labor 57000 Department M Depertme A $25.000 2,000 54,000 Pigot applies manufacturing overheed to production orders on the besis of direct labor cost using depertmental rates predetermined ot the beginning of the year based on the annual budget The totel cost associated with Job No. 432 for the year should be O $165.000 O $146,500 o $143500 O $200 s00 ViewSonic

Explanation / Answer

D. $200,500

Manufacturing overhead = [($651,000/217,000) × $25,000] + [($417,000/834,000) × $29,000] = $89,500

Total cost associated with Job. No. 432 = $57,000 + $54,000 + $89,500 = $200,500

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