Presley Products Inc.is a manufacturer of limited edition dolls.They use operations costing to measure and track the costs incurred for specific product lines.While most of the products do require some machine time,Presley has determined that direct labour hours drive its manufacturing overhead costs.During the month of April,the following data were available for a particular line of dolls:
$\begin{array}{llcc}
\text { Direct labour } & \text { 3000 hours at $ \$ 10 $ per hour } \
\text {Direct materials } & \text { 4000 kilos at $ \$ 2 $ per kilo } \
\end{array}$

If total overhead costs during the month totalled $25 000 when a total of 50 000 direct labour hours were worked,what will be the total manufacturing cost for this line of dolls?

Question

Presley Products Inc.is a manufacturer of limited edition dolls.They use operations costing to measure and track the costs incurred for specific product lines.While most of the products do require some machine time,Presley has determined that direct labour hours drive its manufacturing overhead costs.During the month of April,the following data were available for a particular line of dolls:
$\begin{array}{llcc}
  \text { Direct labour } & \text {   3000 hours at $ \$ 10 $ per hour } \
 \text {Direct materials  } & \text {  4000 kilos at $ \$ 2 $ per kilo } \
\end{array}$

If total overhead costs during the month totalled $25 000 when a total of 50 000 direct labour hours were worked,what will be the total manufacturing cost for this line of dolls?

Quizplus · Accepted Answer

The Answer of Presley Products Inc.is a manufacturer of limited edition dolls.They use operations costing to measure and track the costs incurred for specific product lines.While most of the products do require some machine time,Presley has determined that direct labour hours drive its manufacturing overhead costs.During the month of April,the following data were available for a particular line of dolls:
$\begin{array}{llcc}
  \text { Direct labour } & \text {   3000 hours at $ \$ 10 $ per hour } \
 \text {Direct materials  } & \text {  4000 kilos at $ \$ 2 $ per kilo } \
\end{array}$

If total overhead costs during the month totalled $25 000 when a total of 50 000 direct labour hours were worked,what will be the total manufacturing cost for this line of dolls?

Presley Products Inc If Total Overhead Costs During the Month Totalled $25 000