Question

Swifty Coporation manufactures customized desks. The following pertains to Job No. 953:Direct materials used $16,800

Direct labor hours worked 600
Direct labor rate per hour $16.00
Machine hours used 400
Applied factory overhead rate per machine hour $30.00

What is the total manufacturing cost for Job No. 953?
A) $35,200
B) $38,400
C) $41,200
D) $44,400

Answer 1

B) $38,400

Step-by-step explanation:

The total manufacturing cost for Job No. 953 is given by sum of the direct materials, direct labor and machine costs. Direct materials cost was already stated; Direct labor and machine costs are calculated by multiplying their hours worked or used by their respective hourly rates:

`C = \$16,800+(600*\$16.00)+(400*\$30.00)\\C=\$38,400`

The total manufacturing cost is $38,400