Answer:
Total production costs= $57,500
Step-by-step explanation:
Giving the following information:
Estimated manufacturing overhead rate= $65 per direct manufacturing labor-hour.
Direct materials of $35,000
250 direct manufacturing labor-hours at $25 per hour
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 65*250= $16,250
Now, the total production costs:
Total production costs= 35,000 + 25*250 + 16,250
Total production costs= $57,500