Company XYZ applies overhead cost to jobs on the basis of direct labor cost, Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $12,400 for direct materials and $24,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $12,000 b. None of the answers given c. $36,400 d. $11,000 e. $13,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Company XYZ applies overhead cost
to jobs on the basis of direct labor
cost. Job A, which was started and
completed during the current period,
shows charges of $15,000 for direct
materials, $13,000 for direct labor,
and $26,000 for overhead on its job
cost sheet. Job B, which is still in
process at year-end, shows charges
of $12,400 for direct materials and
$24,000 for applied overhead. Direct
labor cost of Job B at year-end is:
Select one:
a. $12,000
b. None of the answers given
c. $36,400
d. $11,000
e. $13,000
Transcribed Image Text:Company XYZ applies overhead cost to jobs on the basis of direct labor cost. Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $12,400 for direct materials and $24,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $12,000 b. None of the answers given c. $36,400 d. $11,000 e. $13,000
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