Ocean Technical Services applies manufacturing overhead costs to products at a predetermined rate of $70 per direct labor hour. One customer has requested a bid on a special order of a product. Estimates for this order include: direct materials $50,000; direct labor 900 direct labor hours @ $30 per hour; and a markup rate of 25%.
-Manufacturing overhead cost estimates for this special order total:

Question

Ocean Technical Services applies manufacturing overhead costs to products at a predetermined rate of $70 per direct labor hour. One customer has requested a bid on a special order of a product. Estimates for this order include:  direct materials $50,000; direct labor 900 direct labor hours @ $30 per hour; and a markup rate of 25%.
-Manufacturing overhead cost estimates for this special order total:

Quizplus · Accepted Answer

D)$63,000 = 900 dlh × $70 predetermined rate

Ocean Technical Services Applies Manufacturing Overhead Costs to Products at a Predetermined