Innovative Tech Systems, a manufacturing company, has just completed an order that Greenfield Enterprises placed for 150 devices. The direct material, purchased parts, and direct labor costs for the Greenfield order are as follows: • • • • • Cost of direct materials: $65,000 Cost of purchased parts: $45,000 Direct labor hours: 300 Average direct labor pay rate: $20 Overhead costs were applied at a single, plant wide overhead rate of 250 percent of direct labor dollars. What is the total cost of the Greenfield Enterprises order?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter4: Activity-based Costing
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Innovative Tech Systems, a manufacturing company, has just completed an order that Greenfield
Enterprises placed for 150 devices. The direct material, purchased parts, and direct labor costs for
the Greenfield order are as follows:
•
•
•
•
•
Cost of direct materials: $65,000
Cost of purchased parts: $45,000
Direct labor hours: 300
Average direct labor pay rate: $20
Overhead costs were applied at a single, plant wide overhead rate of 250 percent of direct
labor dollars.
What is the total cost of the Greenfield Enterprises order?
Transcribed Image Text:Innovative Tech Systems, a manufacturing company, has just completed an order that Greenfield Enterprises placed for 150 devices. The direct material, purchased parts, and direct labor costs for the Greenfield order are as follows: • • • • • Cost of direct materials: $65,000 Cost of purchased parts: $45,000 Direct labor hours: 300 Average direct labor pay rate: $20 Overhead costs were applied at a single, plant wide overhead rate of 250 percent of direct labor dollars. What is the total cost of the Greenfield Enterprises order?
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