The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR25,900 O b. OMR6,400 O c. OMR25,000 O d. OMR23,400 O e. OMR10,900

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The total prime cost of a product was OMR3,900. The
variable manufacturing overhead is calculated based
on the number of direct labor hours. The variable
manufacturing overhead cost per hour is five times the
direct labor cost per hour. The fixed manufacturing
overhead was OMR2,500. Assuming that direct labor
hours were 400 and that the direct labor cost was 30%
of direct materials cost, how much is the total
manufacturing cost?
Select one:
O a. OMR25,900
O b. OMR6,400
O c. OMR25,000
O d. OMR23,400
O e. OMR10,900
Transcribed Image Text:The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR25,900 O b. OMR6,400 O c. OMR25,000 O d. OMR23,400 O e. OMR10,900
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