Answer the following questions using the information below:
Pearl Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $50,000; 400 direct manufacturing labor-hours at $20 per hour; and a 30% markup rate on total manufacturing costs.
-Estimated total product costs for this special order equal ________.
A) $96,000
B) $76,000
C) $80,000
D) $82,000

Question

Quizplus · Accepted Answer

The total manufacturing costs include direct materials ($50,000), direct labor (400 hours x $20 = $8,000), and manufacturing overhead (400 hours x $60 = $24,000). The total is $82,000.

Answer the Following Questions Using the Information Below