Answer:
Total production costs= $57,500
Explanation:
Giving the following information:
Estimated manufacturing overhead rate= $65 per direct manufacturing labor-hour.
Direct materials of $35,000
250 direct manufacturing labor-hours at $25 per hour
<u>First, we need to allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 65*250= $16,250
<u>Now, the total production costs:</u>
Total production costs= 35,000 + 25*250 + 16,250
Total production costs= $57,500
