Question

Redman Company manufactures customized desks. The following pertains to Job No. 978: Direct materials used $15,450 Direct labor hours worked 360 Direct labor rate per hour $15.00 Machine hours used 300 Applied factory overhead rate per machine hour $22.00 What is the total manufacturing cost for Job No. 978?

Answer 1

$27,450

Step-by-step explanation:

Given:

Direct materials cost = $15,450

Direct labor hours worked = 360

Direct labor rate per hour = $15.00

Machine hours used = 300

Applied factory overhead rate per machine hour = $22.00

The total Direct labor cost = Direct labor hours × Direct labor rate per hour

or

The total Direct labor cost = 360 × $15.00 = $5,400

And,

The total overhead cost = overhead rate per machine hour × Machine hours

or

The total overhead cost = $22.00 × 300 = $6,600

Therefore,

the total manufacturing cost

= Direct materials cost + total Direct labor cost + total overhead cost

the total manufacturing cost = $15,450 + $5,400 + $6,600 = $27,450