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The following data relates to the production of Product B-09 for the current period:

Direct materials $3,991
Direct labor-hours 85 labor-hours
Direct labor wage rate $13 per labor-hour
Machine-hours 129 machine-hours

The company allocates manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $30 per machine-hour.
The total cost for Product B-09 for the current period would be _____.

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facundobuzzetti

Answer:

Total cost= $8,966

Explanation:

Giving the following information:

Direct materials $3,991

Direct labor-hours 85 labor-hours

Direct labor wage rate $13 per labor-hour

Machine-hours 129 machine-hours

The predetermined overhead rate is $30 per machine-hour.

The total cost is calculated as follow:

Total cost= direct material + direct labor + allocated overhead

Total cost= 3,991 + (85*13) + (129*30)

Total cost= $8,966