Oman Marble Company has two processing departments, Cutting and Polishing. The company uses amultiple predetermined overhead rate in each processing department under job-order costingsystem. The Cutting Department's predetermined overhead rate is based on machine-hours and thePolishing Department's predetermined overhead rate is based on direct labor cost. At the beginningof the current period, the company records show the following estimated information:CuttingPolishingDirect Labor cost per hour%242070Direct labor-hours5,00010,000Machine-hours20,0005,000Total fixed manufacturing overhead cost$ 100,000$ 60,000Variable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hour24During the current period the company started and finished a job order number 3122. The job costsheet shows the following data for this job:Job3122:CuttingPolishingMachine-hours9020Direct labor-hours3060Direct materials50024250Direct labor cost%24450$ 4,000The total job cost for Job3122 is closest to:%24 Job3122:CuttingPolishingMachine-hours9020Direct labor-hours3060Direct materials$500250Direct labor cost$ 4504,000The total job cost for Job3122 is closest to:O a. None of the given answerO b. $ 6,700O c. $ 6,900O d. $ 5,200%24

Total Job Cost = Direct Materials + Direct Labor + Applied Overhead Direct materials : Cutting -…

Answered: Oman Marble Company has two processing…

Business

Accounting

Oman Marble Company has two processing departments, Cutting and Polishing. The company uses a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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