Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour.If 200 machine hours were used for Job #333, what is the total manufacturing cost for Job #333?
A)$20,000
B)$70,200
C)$70,000
D)$90,000
E)$100,000

Question

Quizplus · Accepted Answer

The total manufacturing cost is calculated by adding direct materials, direct labor, and factory overhead costs. Direct materials and labor are $70,000. Factory overhead is $100 per machine hour, and 200 machine hours were used, so the overhead cost is 200 * $100 = $20,000. Therefore, the total manufacturing cost is $70,000 + $20,000 = $90,000.

Direct Materials and Direct Labor Costs Total $70,000 and Factory