Question

Sheridan Company manufactures customized desks. The following pertains to Job No. 978: Direct materials used $11450 Direct labor hours worked 560 Direct labor rate per hour $15.00 Machine hours used 500 Applied factory overhead rate per machine hour $22.00 What is the total manufacturing cost for Job No. 978?

Answer 1

$30,850

Step-by-step explanation:

The total manufacturing cost is made up of the material cost, labor cost and manufacturing overheads. it captures all the costs (both indirect and direct) incurred in the course of the production of the product and may be computed as;

Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost

= $11,450 + (560 × $15) + (500 × $22)

= $30,850