Answer:
The total manufacturing costs of Job #316 is $2,485
Explanation:
As we know that,
The total manufacturing cost = Direct material cost + direct labor cost + manufacturing overhead cost
where,
Direct material cost = Machining direct material cost + assemble direct material cost
= $250 + $150
= $400
The direct labor cost = Machining direct labor cost + assemble direct labor cost
= $125 + $375
= $500
The machining overhead cost equals to
= Manufacturing overhead costs ÷ machine hours
= $480,000 ÷ 20,000
= $24
So, the cost = $24 × 50 = $1,200
And, The assembly overhead cost equals to
= Manufacturing overhead costs ÷ direct labor hours
= $280,000 ÷ 40,000
= $7
So, the cost = $7 × 55 = $385
Now put these values to the above formula
So, the value equals to
= $400 + $500 + $1,200 + $385
= $2,485