Vertex Technologies, a manufacturing company, has just completed an order that TechWorld Inc. placed for 200 gadgets. The direct material, purchased parts, and direct labor costs for the TechWorld order are as follows: • . . • Cost of direct materials: $72,000 Cost of purchased parts: $40,000 Direct labor hours: 400 hours Average direct labor pay rate: $20 per hour Overhead costs were applied at a plant-wide overhead rate of 300 percent of direct labor dollars. Compute the total cost of the TechWorld order.

Vertex Technologies, a manufacturing company, has just completed an order that TechWorld Inc. placed for 200 gadgets. The direct material, purchased parts, and direct labor costs for the TechWorld order are as follows: • . . • Cost of direct materials: $72,000 Cost of purchased parts: $40,000 Direct labor hours: 400 hours Average direct labor pay rate: $20 per hour Overhead costs were applied at a plant-wide overhead rate of 300 percent of direct labor dollars. Compute the total cost of the TechWorld order.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 10E: Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide...

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