Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour.If 300 machine hours were used for Job #222,what is the total manufacturing cost for Job #222?
A)$30,000
B)$60,000
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. Direct materials and labor are $70,000. Factory overhead is $100 per machine hour, and 300 machine hours were used, so the overhead cost is 300 * $100 = $30,000. Total cost = $70,000 + $30,000 = $100,000.

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