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 calculate the manufacturing cost of Job 532, we need to add the cost of direct materials, direct labor and manufacturing overhead allocated. 
Direct materials = $18,000 
Direct labor = $20,800 
Manufacturing overhead allocated = $7,930 ($5 per machine hour x 1586 machine hours) 
Total manufacturing cost = $18,000 + $20,800 + $7,930 = $46,730. 
Therefore, the correct answer is choice D.

Nadal Corporation Manufactures Custom Molds for Use in the Extrusion