Question

Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 100 per direct manufacturing laborminushour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order​ include: Direct materials of $ 41 comma 000​; 450 direct manufacturing laborminushours at $ 35 per​ hour; and a 30​% markup rate on total manufacturing costs. Estimated total product costs for this special order equal​ ________.

Answer 1

Answer:

total product costs  =   $101750

Explanation:

given data

overhead costs = $ 100

Direct materials of $41,000

direct manufacturing labor  = 450

per​ hour = $35

markup rate = 30 %

solution

we get here total product costs  that is express as

total product costs  = Direct materials + DML + MOH ..........1

total product costs  = $41,000 + ( 450 × $35 ) + ( 450  × $100 )

total product costs  =  $41,000 + $15750 + $45000

total product costs  =   $101750