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Mendoza Industries manufactures chainsaws. The company has two activities that are used to apply overhead to its products: Machining, applied at the rate of $15 per machine hour Finishing, applied at the rate of $25 per direct labor hour This month, 200 chainsaws were made, using 1,000 machine hours and 400 direct labor hours. Total direct material costs were $20,000 and total direct labor cots were $6,000. What is the total cost to manufacture the 200 chainsaws?

Mendoza Industries manufactures chainsaws. The company has two activities that are used to apply overhead to its products: Machining, applied at the rate of $15 per machine hour Finishing, applied at the rate of $25 per direct labor hour This month, 200 chainsaws were made, using 1,000 machine hours and 400 direct labor hours. Total direct material costs were $20,000 and total direct labor cots were $6,000. What is the total cost to manufacture the 200 chainsaws?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Mendoza Industries manufactures chainsaws. The company has two activities that are used to apply overhead to its products: Machining, applied at the rate of $15 per machine hour • Finishing, applied at the rate of $25 per direct labor hour ● This month, 200 chainsaws were made, using 1,000 machine hours and 400 direct labor hours. Total direct material costs were $20,000 and total direct labor cots were $6,000. What is the total cost to manufacture the 200 chainsaws? O $25,000 O $45,000 O $51,000 O $26,000
Transcribed Image Text:Mendoza Industries manufactures chainsaws. The company has two activities that are used to apply overhead to its products: Machining, applied at the rate of $15 per machine hour • Finishing, applied at the rate of $25 per direct labor hour ● This month, 200 chainsaws were made, using 1,000 machine hours and 400 direct labor hours. Total direct material costs were $20,000 and total direct labor cots were $6,000. What is the total cost to manufacture the 200 chainsaws? O $25,000 O $45,000 O $51,000 O $26,000
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