Answer:
Total cost= $385,000
Explanation:
Giving the following information:
Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production.
First, we need to calculate the unitary hourly rate for the department:
Total cost= 110,000 + 170,000 + 28,000= 308,000
Hourly cost= 308,000/8,000= $38.5
Now, for 10,000 hours:
Total cost= 38.5*10,000= $385,000
