Cost Accounting Quiz: Job Cost Computation
18 questions · exam conditions
0:00
Job Cost ComputationQuestion 1 of 18

Zenith Corporation's Job #H-205 was completed with total costs of $45,600. The job cost sheet shows that applied overhead represents 40% of the total job cost, and direct labor cost is 150% of direct materials cost. How much was spent on direct materials for this job?

$10,944
$12,480
$14,200
$16,416
← Back to quizzes

Cost Accounting Quiz

Cost Accounting Quiz: Job Cost Computation

Practice Job Cost Computation in Cost Accounting with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on Job Cost Computation, giving you a quick way to practice the rules, question types, and explanations that matter most for Cost Accounting.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

All questions

Question 1

Zenith Corporation's Job #H-205 was completed with total costs of $45,600. The job cost sheet shows that applied overhead represents 40% of the total job cost, and direct labor cost is 150% of direct materials cost. How much was spent on direct materials for this job?

  1. $10,944 (correct answer)
  2. $12,480
  3. $14,200
  4. $16,416
Explanation: Applied overhead = $45,600 × 40% = $18,240. Direct materials + direct labor = $45,600 - $18,240 = $27,360. Let direct materials = X, then direct labor = 1.5X. So X + 1.5X = $27,360, which gives 2.5X = $27,360, therefore X = $10,944. Choice B assumes overhead is 35%. Choice C uses incorrect labor ratio. Choice D miscalculates the percentage relationships.

Question 2

A material requisition form #982 shows that $12,000 of material was issued from the storeroom. Of this amount, $10,000 was for direct materials for Job #A-20 and the remainder was for indirect materials used for general factory maintenance. The time ticket for Job #A-20 shows 200 hours of direct labor at $22/hour. The company applies manufacturing overhead at a rate of 125% of direct labor cost.

What is the total manufacturing cost to be recorded on the job cost sheet for Job #A-20 based on this information?

  1. $21,900
  2. $22,400
  3. $19,900 (correct answer)
  4. $14,400
Explanation: The job cost sheet only includes the direct costs for that job plus applied overhead. Indirect materials are part of actual manufacturing overhead, not a direct cost of the job.
  1. Direct Materials: The requisition form explicitly states $10,000 was for Job #A-20. The remaining $2,000 is indirect material.
  2. Direct Labor: 200 hours × $22/hour = $4,400.
  3. Applied Overhead: 125% of direct labor cost = 1.25 × $4,400 = $5,500.
  4. Total Job Cost: $10,000 (DM) + $4,400 (DL) + $5,500 (OH) = $19,900.

Question 3

Amtek Corp. produces custom machinery. Job #550 produced a primary machine and a secondary motor, which is treated as a byproduct. Costs for the job were: Direct Materials $80,000, Direct Labor $120,000, and Applied MOH $60,000. The primary machine (the main product) has a final selling price of $400,000. The byproduct motor can be sold for $5,000 after incurring $500 in additional selling costs. Amtek's policy is to reduce the cost of the main product by the net realizable value of any byproducts.

What is the total manufacturing cost assigned to the primary machine from Job #550?

  1. $260,000
  2. $255,000
  3. $255,500 (correct answer)
  4. $264,500
Explanation: The cost assigned to the main product is the total job cost less the net realizable value (NRV) of the byproduct. 1. Calculate the total joint cost of the job: Total Cost = DM + DL + Applied OH = $80,000 + $120,000 + $60,000 = $260,000. 2. Calculate the net realizable value of the byproduct: NRV = Selling Price of Byproduct - Additional Selling Costs = $5,000 - $500 = $4,500. 3. Calculate the cost of the main product: Cost of Main Product = Total Joint Cost - NRV of Byproduct = $260,000 - $4,500 = $255,500.

Question 4

A job cost sheet for Job #B34 shows a total cost of $88,400 for 1,000 units. The company's policy is to apply manufacturing overhead at a rate of 150% of direct labor cost. The direct materials charged to the job amounted to $20,000.

What was the total direct labor cost for Job #B34?

  1. $27,360 (correct answer)
  2. $45,600
  3. $68,400
  4. $34,200
Explanation: This is an algebraic 'work backward' problem. The total job cost formula is: Total Cost = Direct Materials (DM) + Direct Labor (DL) + Applied Overhead (OH). \nWe are given: \n- Total Cost = $88,400 \n- DM = 20,000\n−OH=1.50×DL\nLet′x′betheDirectLaborcost.Theequationis:\n20,000 \n- OH = 1.50 × DL \nLet 'x' be the Direct Labor cost. The equation is: \n88,400 = 20,000+x+1.50x\n20,000 + x + 1.50x \n88,400 - 20,000=2.50x\n20,000 = 2.50x \n68,400 = 2.50x \nx = $68,400 / 2.50 \nx = $27,360.

Question 5

AeroFab Inc. manufactures custom aircraft components. The company uses a job-order costing system and applies manufacturing overhead based on machine hours. At the beginning of the year, AeroFab estimated total manufacturing overhead costs of $960,000 and total machine hours of 24,000. For Job A-55, which was started and completed during the month, the following costs were incurred: direct materials of $45,000 and direct labor of $30,000 (for 1,200 hours). The job required 850 machine hours. Actual manufacturing overhead for the month was $85,000.

What is the total manufacturing cost recorded on the job cost sheet for Job A-55?

  1. $109,000 (correct answer)
  2. $110,750
  3. $75,000
  4. $113,800
Explanation: The total manufacturing cost for a job is the sum of direct materials, direct labor, and applied manufacturing overhead.
  1. Calculate the predetermined overhead rate (POHR): POHR = Estimated Total MOH Cost / Estimated Total Allocation Base = $960,000 / 24,000 machine hours = $40 per machine hour.
  2. Calculate applied overhead for Job A-55: Applied OH = POHR × Actual Machine Hours for the Job = $40/MH × 850 MH = $34,000.
  3. Calculate total job cost: Total Cost = Direct Materials + Direct Labor + Applied OH = $45,000 + $30,000 + $34,000 = $109,000.

Question 6

ForgeRight Corp. accepted a rush order, Job #R-50, which required employees to work overtime. The job incurred 800 regular hours at $25/hour and 100 overtime hours at time-and-a-half. Corporate policy is to charge the overtime premium directly to the specific job that caused it. Manufacturing overhead is applied at $15 per direct labor hour (including both regular and overtime hours). Direct materials for the job cost $18,000.

What is the total cost of Job #R-50?

  1. $54,000
  2. $55,250 (correct answer)
  3. $53,750
  4. $41,750
Explanation: The total cost includes DM, DL (including overtime premium), and applied OH. Since the overtime premium is charged to the job, it's part of the direct labor cost.
  1. Direct Materials: $18,000.
  2. Direct Labor: \n - Regular pay: (800 + 100) hours × $25/hour = 900 hours × $25/hour = 22,500.\n−Overtimepremium:100hours×(22,500. \n - Overtime premium: 100 hours × (25/hour × 0.5) = 100 hours × $12.50/hour = $1,250. \n - Total Direct Labor = $22,500 + $1,250 = $23,750.
  3. Applied Overhead: Overhead is applied to all hours worked. \n - Total hours = 800 regular + 100 overtime = 900 hours. \n - Applied OH = 900 hours × $15/hour = $13,500.
  4. Total Job Cost: $18,000 (DM) + $23,750 (DL) + $13,500 (OH) = $55,250.

Question 7

BuildCo started and completed Job #101, which consisted of 50 custom cabinets. After completion, it was discovered that the hinges on 5 cabinets were misaligned due to an error in the initial specifications. Correcting the error required 8 additional direct labor hours at $30/hour and $100 in new materials. This type of rework is considered normal for the complexity of BuildCo's jobs and is charged to manufacturing overhead. Manufacturing overhead is applied to all jobs at 150% of direct labor cost. The original costs recorded for Job #101 before the rework was discovered were $9,000 in direct materials and $12,000 in direct labor.

What is the total cost of Job #101 on its job cost sheet?

  1. $39,000 (correct answer)
  2. $39,340
  3. $39,700
  4. $39,440
Explanation: The total cost of the job includes the original direct materials, original direct labor, and the applied overhead based on the original direct labor. The cost of normal rework ($100 in materials, and 8 hours * $30/hr = $240 in labor) is charged to the manufacturing overhead account, not directly to the job.
  1. Original Direct Materials: $9,000.
  2. Original Direct Labor: $12,000.
  3. Applied Overhead: The overhead is applied based on the original direct labor cost before rework. Applied OH = 150% × $12,000 = $18,000.
  4. Total Job Cost: $9,000 (DM) + $12,000 (DL) + $18,000 (OH) = $39,000. The costs of rework are part of the overall actual overhead for the period but do not get added to this specific job's cost sheet.

Question 8

A manufacturing company's job cost sheet for Job 88P shows the following information for the 50 units produced:

  • Direct materials: $12,500
  • Direct labor (800 hours): $20,000
  • Selling & administrative costs allocated to the job: $5,000
  • Shipping costs for the job: $1,000 Manufacturing overhead was applied at a rate of $25 per direct labor hour.

What is the correct unit product cost for Job 88P?

  1. $1,070
  2. $1,120
  3. $1,050 (correct answer)
  4. $650
Explanation: The unit product cost includes only manufacturing costs (direct materials, direct labor, and manufacturing overhead). Selling, administrative, and shipping costs are period costs, not product costs.
  1. Direct Materials: $12,500.
  2. Direct Labor: $20,000.
  3. Applied Manufacturing Overhead: 800 direct labor hours × $25/hour = $20,000.
  4. Total Product Cost: $12,500 (DM) + $20,000 (DL) + $20,000 (OH) = $52,500.
  5. Unit Product Cost: $52,500 / 50 units = $1,050 per unit.

Question 9

Phoenix Inc. uses a job-order cost system where manufacturing overhead is applied based on direct material cost. The predetermined rate is 60%. The job cost sheet for Job #C-13, a batch of 1,000 units, shows direct labor costs of $50,000. The total manufacturing cost for the job was $146,000.

What was the direct material cost per unit for Job #C-13?

  1. $66.25
  2. $96.00
  3. $30.00
  4. $60.00 (correct answer)
Explanation: This problem requires working backward to find the direct material cost and then calculating the per-unit cost. The total cost equation is: Total Cost = DM + DL + OH. \nWe know: \n- Total Cost = $146,000 \n- DL = 50,000\n−OH=0.60×DM\nLet′x′betheDirectMaterialcost.\n50,000 \n- OH = 0.60 × DM \nLet 'x' be the Direct Material cost. \n146,000 = x + 50,000+0.60x\n50,000 + 0.60x \n146,000 - 50,000=1.60x\n50,000 = 1.60x \n96,000 = 1.60x \nx = $96,000 / 1.60 = $60,000 (Total Direct Material Cost) \nNow, calculate the per-unit direct material cost: \nUnit DM Cost = $60,000 / 1,000 units = $60.00 per unit.

Question 10

PrintSource Inc. applies manufacturing overhead based on machine hours. For the upcoming year, the company budgets total manufacturing overhead of $750,000 and 50,000 machine hours. In January, the company worked on a single job, Job #P-01, to print 100,000 marketing brochures. The job used $45,000 in direct materials, 1,200 direct labor hours at a cost of $24,000, and 3,100 machine hours. The company incurred actual total manufacturing overhead costs of $65,000 in January.

What is the unit product cost for each brochure from Job #P-01?

  1. $1.155 (correct answer)
  2. $1.340
  3. $1.121
  4. $0.690
Explanation: First, calculate the total cost of the job, then divide by the number of units.
  1. Calculate the predetermined overhead rate (POHR): POHR = Budgeted MOH / Budgeted Machine Hours = $750,000 / 50,000 MH = $15 per machine hour.
  2. Calculate applied overhead for Job #P-01: Applied OH = POHR × Actual Machine Hours = $15/MH × 3,100 MH = $46,500.
  3. Calculate total job cost: Total Cost = DM + DL + Applied OH = $45,000 + $24,000 + $46,500 = $115,500.
  4. Calculate unit product cost: Unit Cost = Total Cost / Number of Units = $115,500 / 100,000 brochures = $1.155 per brochure.

Question 11

In 20X1, Artisan Furniture Co. used a predetermined overhead rate of $18 per direct labor hour. For 20X2, the company has decided to switch to an overhead rate based on machine hours. Budgeted data for 20X2 is: Manufacturing Overhead $480,000; Direct Labor Hours 25,000; Machine Hours 20,000. A specific job, #789, was planned with the expectation of requiring 100 direct labor hours and 60 machine hours.

By what amount will the estimated overhead cost for Job #789 change due to the switch in allocation bases?

  1. $1,800 decrease
  2. $360 increase
  3. $1,440 increase
  4. $360 decrease (correct answer)
Explanation: This question requires calculating the applied overhead for the job under both the old and new systems and then finding the difference.
  1. Calculate OH under the old system (20X1 rate): The old rate was $18 per direct labor hour. Applied OH (Old) = 100 DLH × $18/DLH = $1,800.
  2. Calculate the new POHR for 20X2: The new base is machine hours. POHR (New) = Budgeted MOH / Budgeted MH = $480,000 / 20,000 MH = $24 per machine hour.
  3. Calculate OH under the new system: Applied OH (New) = 60 MH × $24/MH = $1,440.
  4. Calculate the change: Change = New OH - Old OH = $1,440 - 1,800=−1,800 = -360. This is a $360 decrease.

Question 12

At the beginning of the year, a company estimated manufacturing overhead would be $600,000 and 30,000 direct labor hours would be worked. In November, Job #1122 was completed. Its job cost sheet shows $18,000 in direct materials and 850 direct labor hours. The direct labor wage rate is $25 per hour. The company's actual manufacturing overhead for the year was $635,000 for 32,000 actual direct labor hours.

What is the unit cost for Job #1122 if it consisted of 1,000 identical units?

  1. $39.25
  2. $55.16
  3. $58.16
  4. $56.25 (correct answer)
Explanation: To find the unit cost, first calculate the total cost of the job using the predetermined overhead rate, then divide by the number of units. The actual overhead data for the year is irrelevant for costing the specific job.
  1. Calculate the predetermined overhead rate (POHR): POHR = Estimated MOH / Estimated DLH = $600,000 / 30,000 DLH = $20 per DLH.
  2. Calculate costs for Job #1122: \n - Direct Materials: $18,000. \n - Direct Labor: 850 DLH × $25/hour = $21,250. \n - Applied Overhead: 850 DLH × $20/DLH (POHR) = $17,000.
  3. Calculate total job cost: $18,000 + $21,250 + $17,000 = $56,250.
  4. Calculate unit cost: $56,250 / 1,000 units = $56.25 per unit.

Question 13

A company uses a job order costing system. The job cost sheet for Job #305, which was completed during the period, showed total prime costs of $56,000. The job incurred 2,000 direct labor hours at a rate of $16 per hour. Manufacturing overhead was applied based on direct labor hours.

If the total manufacturing cost for Job #305 was $84,000, what was the company's predetermined overhead rate?

  1. $28.00 per direct labor hour
  2. $14.00 per direct labor hour (correct answer)
  3. $12.00 per direct labor hour
  4. $42.00 per direct labor hour
Explanation: This question requires working backwards from total cost to find the applied overhead, and then calculating the rate.
  1. Find total applied overhead: Total Cost = Prime Costs + Applied OH. Therefore, Applied OH = Total Cost - Prime Costs = $84,000 - $56,000 = $28,000.
  2. Identify the allocation base: The job incurred 2,000 direct labor hours.
  3. Calculate the predetermined overhead rate: POHR = Total Applied OH / Actual Allocation Base = $28,000 / 2,000 DLH = $14.00 per direct labor hour. The direct labor rate of $16/hour is extra information not needed for the final calculation but is needed to confirm the composition of prime costs.

Question 14

Duratech Components began the year with $50,000 of raw materials inventory. During the year, it purchased an additional $450,000 of raw materials. The year-end raw materials inventory was $35,000. Direct labor costs for the year totaled $300,000. Manufacturing overhead is applied at 120% of direct labor cost. All materials issued from the storeroom are for direct use in production. During the year, the company worked on several jobs. The job cost sheet for Job #X-7, the only job completed and sold during the year, shows direct labor costs of $60,000.

If the direct materials used on Job #X-7 were proportional to its share of the total direct labor cost for the year, what was the total manufacturing cost of Job #X-7?

  1. $225,000 (correct answer)
  2. $222,000
  3. $153,000
  4. $597,000
Explanation: This is a multi-step problem requiring calculation of total materials used, allocation to the job, and then calculation of total job cost.
  1. Calculate total raw materials used: Beginning RM + Purchases - Ending RM = $50,000 + $450,000 - $35,000 = $465,000.
  2. Determine the proportion of labor for Job #X-7: Job #X-7 DL / Total DL = $60,000 / $300,000 = 20%.
  3. Allocate direct materials to Job #X-7: Total DM Used × Proportion = $465,000 × 20% = $93,000.
  4. Calculate applied overhead for Job #X-7: 120% of Job #X-7 DL Cost = 1.20 × $60,000 = $72,000.
  5. Calculate total cost of Job #X-7: DM + DL + Applied OH = $93,000 + $60,000 + $72,000 = $225,000.

Question 15

A company's Work-in-Process inventory account had a balance of $30,000 at the start of the month, which consisted entirely of the cost of Job #501. During the month, the following occurred: direct materials of $100,000 were issued to production (with $40,000 going to Job #501), and direct labor of $150,000 was incurred (with $60,000 going to Job #501). Overhead is applied at 70% of direct labor cost. Job #501 was completed, but not sold. Other jobs are still in process.

What is the amount that will be transferred from the Work-in-Process account to the Finished Goods account during the month?

  1. $100,000
  2. $142,000
  3. $172,000 (correct answer)
  4. $385,000
Explanation: The amount transferred from Work-in-Process to Finished Goods is the total cost of jobs completed during the period. In this case, only Job #501 was completed. Its total cost is its beginning balance plus all costs added during the month.
  1. Beginning Cost of Job #501: $30,000.
  2. Costs Added to Job #501: \n - Direct Materials: $40,000. \n - Direct Labor: $60,000. \n - Applied Overhead: 70% × $60,000 DL = $42,000.
  3. Total Cost of Job #501: $30,000 (Beg. WIP) + $40,000 (DM) + $60,000 (DL) + $42,000 (OH) = $172,000. This is the amount transferred to Finished Goods.

Question 16

At the beginning of June, Job #M-12 was the only job in process at Stellar Corp., with a beginning balance of $15,500. During June, the company started Jobs #M-13 and #M-14. Direct materials requisitioned in June were $40,000, of which $12,000 was for Job #M-12, $18,000 for #M-13, and the remainder for #M-14. Direct labor costs for June were $60,000, with $20,000 for #M-12, $25,000 for #M-13, and $15,000 for #M-14. Manufacturing overhead is applied at a rate of 80% of direct labor cost. Job #M-12 was completed and transferred to finished goods in June.

What is the total cost of Job #M-12 as shown on its completed job cost sheet?

  1. $32,000
  2. $48,000
  3. $63,500 (correct answer)
  4. $47,500
Explanation: The total cost of a completed job that was in beginning Work-in-Process is the sum of its beginning WIP balance plus all costs added during the current period.
  1. Beginning WIP Cost for #M-12: $15,500.
  2. Costs added to #M-12 in June: \n - Direct Materials: $12,000. \n - Direct Labor: $20,000. \n - Applied Overhead: 80% of direct labor cost = 0.80 × $20,000 = $16,000.
  3. Total costs added in June for #M-12: $12,000 + $20,000 + $16,000 = $48,000.
  4. Total Cost of completed Job #M-12: Beginning Cost + Costs Added = $15,500 + $48,000 = $63,500.

Question 17

Metro Electronics completed Job #815 with the following costs accumulated on the job cost sheet: Direct materials $8,200, Direct labor $15,600, Applied overhead $10,920. The job produced 120 electronic units, but quality control rejected 8 units as defective and unsaleable.

Based on the job cost information provided, what is the unit product cost for the saleable units from Job #815?

  1. $288.50 per unit
  2. $309.64 per unit (correct answer)
  3. $324.17 per unit
  4. $412.86 per unit
Explanation: Total job cost = $8,200 + $15,600 + $10,920 = $34,720. Saleable units = 120 - 8 = 112 units. Unit cost = $34,720 ÷ 112 = $309.64. Choice A divides by all 120 units produced. Choice C uses incorrect overhead calculation. Choice D incorrectly treats rejected units as a separate cost addition.

Question 18

Coastal Designs uses a job order costing system with predetermined overhead rates. The company completed Job #BD-308 last month. Analysis of the job cost sheet reveals the following information: Total job cost was $67,200, overhead was applied at $18 per machine hour, and the job used 960 machine hours. Direct labor cost was $24,000.

Based on the job cost sheet information provided, what was the direct materials cost for Job #BD-308?

  1. $25,920 (correct answer)
  2. $26,400
  3. $28,480
  4. $30,240
Explanation: Applied overhead = 960 machine hours × $18 = $17,280. Direct materials = Total job cost - Direct labor - Applied overhead = $67,200 - $24,000 - $17,280 = $25,920. Choice B assumes overhead rate of $17 per machine hour. Choice C miscalculates machine hours as 1,040. Choice D uses overhead rate of $20 per machine hour.