Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour.If 200 machine hours were used for Job #202, what is the total manufacturing cost for Job #202?
A)$95,000
B)$75,000
C)$65,000
D)$60,000
E)$55,000

Question

Quizplus · Accepted Answer

Total manufacturing cost for Job #202 = Direct materials cost + Direct labor cost + Factory overhead cost
Direct materials and direct labor costs total = $40,000
Factory overhead costs per machine hour = $100
Machine hours used for Job #202 = 200
Therefore,
Factory overhead cost for Job #202 = $100 x 200 = $20,000
Total manufacturing cost for Job #202 = $40,000 + $20,000 = $60,000
Hence, the correct answer is (D) $60,000.

Direct Materials and Direct Labor Costs Total $40,000 and Factory