Answer:
The correct answer is C.
Explanation:
Giving the following information:
The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively.
Job 352A
Direct material= $32,000
Labor costs= $45,000
First, we need to calculate the predetermined manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 800,000/1,000,000= $0.8 per direct labor dollar
Now, we can calculate the total cost:
Total cost= direct material + direct labor + allocated MOH
Total cost= 32,000 + 45,000 + (0.8*45,000)= $113,000
