Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are as follows: What is the manufacturing cost of Job 532?

Question

Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are as follows:  What is the manufacturing cost of Job 532?

Quizplus · Accepted Answer

To determine the manufacturing cost of Job 532, we need to calculate the total manufacturing overhead incurred and add it to the total direct materials and direct labor costs for the job.

Total Manufacturing Overhead = $23,100 + $15,600 = $38,700

Direct Materials + Direct Labor = $5,400 + $7500 = $12,900

Manufacturing Cost of Job 532 = Total Manufacturing Overhead + Direct Materials + Direct Labor 
= $38,700 + $12,900 
= $44,100

Therefore, the best answer choice is D) $44,100.

Nadal Corporation Manufactures Custom Molds for Use in the Extrusion