Problem - Air Manufacturing uses job costing and reports the following amounts for 2012:
Budgeted Actual
Overhead cost $9,000,000 $9,007,000
Direct labor cost $7,200,000 $7,172,000
Direct materials cost $4,400,000 $4,554,000
Machine hours 250,000 238,100
The following is reported for job 909:
Direct labor cost $421,700
Direct materials used $258,440
Machine hours 14,230
If direct labor cost is used as the activity base for assigning overhead to jobs, calculate the total cost of job 909.
If machine hours is used as the activity base for assigning overhead to jobs, calculate the total cost of job 909.