RedEx Shipping determined the rate to apply overhead based on direct labor hours would be $5.40, and based on machine hours would be $4.20.Job 664 used $26.00 of direct materials, 2.5 machine hours, and 4 hours of direct labor at a cost of $14 per hour.How much is the manufacturing cost of job 664 if RedEx Shipping applies overhead based on machine hours?

Question

Quizplus · Accepted Answer

Manufacturing cost = Direct materials + Direct labor + OverheadOverhead = Machine hours * Overhead rate per machine hourOverhead = 2.5 * $4.20 = $10.50Manufacturing cost = $26.00 + (4 * $14) + $10.50 = $92.50

RedEx Shipping Determined the Rate to Apply Overhead Based on Direct