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anastassius [24]
4 years ago
10

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

Business
1 answer:
Naily [24]4 years ago
6 0

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

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Explanation:

<em>From the question given,</em>

<em>The first step is to make use of a table for the net cash flow series</em>

<em>Year                      1                  2                3              4             5             6</em>

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<em> By applying the rate of   we will computer teh PV of -ve cash flows : </em>

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