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 $14,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $26,400 b. None of the answers given c. $7,000 d. $8,000 e. $13,000
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 $14,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $26,400 b. None of the answers given c. $7,000 d. $8,000 e. $13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The solution method please .
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 $14,000 for applied
overhead. Direct labor cost of Job B at
year-end is: Select one:
a. $26,400
b. None of the answers given
c. $7,000
d. $8,000
e. $13,000
The correct answer is: $7,000
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