Moran Company Uses a Job Order Cost System and Has

Multiple Choice

Moran Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost,based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000.Job no.1 was charged with direct materials of $36,000 and with overhead of $27,000.What is the total cost of job no.1?

A) $64,000.
B) $81,000.
C) $91,000.
D) Cannot be determined without additional information.