Answer:
$886,530
Explanation:
Data provided in the question:
Budgeted sales = 8,700 units
Raw material required per unit of output = 6 pounds
Raw material cost per pound = $2
Direct labor required per unit = 2.9 hours
Direct labor wage rate = $21.00 per direct labor-hour
Predetermined overhead rate = $10
Now,
Total raw material required = 8,700 × 6
= 52,200
Total raw material cost = 52,200 × $2
= $104,400
Total direct labor hours required = 2.9 × 8,700
= 25,230
Total direct labor cost = 25,230 × $21
= $529,830
Total overhead cost = $10 × 25,230
= $252,300
Therefore,
Total cost of goods sold = $104,400 + $529,830 + $252,300
= $886,530
