The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used
1 answer:
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Answer:
A. $2,220,000
Explanation:
We know,
Manufacturing cost = Direct material + Direct labor + Manufacturing overhead
Given,
Direct Material = $1,500,000
Manufacturing overhead = $270,000
To find direct labor, we have to use manufacturing overhead,
Manufacturing overhead = Direct labor x 60%
or, $270,000 = Direct labor x 60%
Direct labor =
Direct labor = $450,000
Therefore, total manufacturing costs = $1,500,000 + $450,000 + $270,000
Total manufacturing costs = $2,220,000