Question

Direct materials used in production totaled $280,000. Direct labor was $375,000, and $180,000 of manufacturing overhead was added to production for the month. What were total manufacturing costs incurred for the month?a. $555,000b. $835,000c. $655,000d. Cannot be determined.

Answer 1

b. $835,000

Step-by-step explanation:

The computation of the total manufacturing cost is calculated by applying the formula which is shown below:

= Direct material + direct labor + manufacturing overhead cost

= $280,000 + $375,000 + $180,000

= $835,000

It includes all types of cost i.e two direct cost (direct labor and the direct material cost and one indirect costs (overhead cost)