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otez555 [7]
3 years ago
7

Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead base

d on machine hours. Selected data for costs incurred for Job 532 are as​ follows:
Direct materials used $5,000
Direct labor cost $36,800
Predetermined manufacturing overhead rate based on machine hours $17
Direct labor hours worked ​3,100
Machine hours used290

What is the manufacturing cost of Job​ 532?

A.$41,800
B.$94,500
C.$46,730
D.​$4,930
Business
1 answer:
Anna11 [10]3 years ago
3 0

Answer:

C.$46,730

Explanation:

Nadal Corporation manufactures custom molds for use in the extrusion industry. Based on the data available we first see the formula to calculate the total manufacturing cost of the job 532.

In general, sum of all the cost directly or indirectly included in the manufacturing cost. Therefore the formula is as below

Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost.

Direct labor cost $36,800

Direct materials used $5,000

Predetermined manufacturing overhead rate based on machine hours $17  which is = $17 x 290 hours

Manufacturing cots= 4930$

Total Manufacturing Cost = 36800 + 5000 + 4930

Total Manufacturing Cost = 46,730$

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Answer for question :

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Hi, in order to find the break even point in units, we have to use the following equation in both cases.

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Since the sales mix is different in both scenarios, let´s find the average variable cost for a) (notice that there is no need to find the average price because both, the stool and the chair have the same price)

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