Redman company manufactures customized desks. the following pertains to job no. 978: direct materials used $15,450 direct labor hours worked 360 direct labor rate per hour $15.00 machine hours used 300 applied factory overhead rate per machine hour $22.00 what is the total manufacturing cost for job no. 978?

$27,450

Explanation:

Given:

Direct materials cost = $15,450

Direct labor hours worked = 360

Direct labor rate per hour = $15.00

Machine hours used = 300

Applied factory overhead rate per machine hour = $22.00

The total Direct labor cost = Direct labor hours × Direct labor rate per hour

or

The total Direct labor cost = 360 × $15.00 = $5,400

And,

The total overhead cost = overhead rate per machine hour × Machine hours

or

The total overhead cost = $22.00 × 300 = $6,600

Therefore,

the total manufacturing cost

= Direct materials cost  + total Direct labor cost +  total overhead cost  

the total manufacturing cost = $15,450 + $5,400 + $6,600 = $27,450

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

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