The total prime cost of a product was OMR7,000. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead hour is four times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,000. Assuming that direct labor hours were 550 and that the direct labor cost was 40% of direct materials cost, how much is the total manufacturing cost? cost per Select one: O a. OMR35,000 O b. OMR39,000 O COMR20,000 O d. OMR19,000 O e. OMR11,000
The total prime cost of a product was OMR7,000. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead hour is four times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,000. Assuming that direct labor hours were 550 and that the direct labor cost was 40% of direct materials cost, how much is the total manufacturing cost? cost per Select one: O a. OMR35,000 O b. OMR39,000 O COMR20,000 O d. OMR19,000 O e. OMR11,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
The total prime cost of a product was OMR7,000. The variable manufacturing overhead is
calculated based on the number of direct labor hours. The variable manufacturing overhead
hour is four times the direct labor cost per hour. The fixed manufacturing overhead
was OMR4,000. Assuming that direct labor hours were 550 and that the direct labor cost was
40% of direct materials cost, how much is the total manufacturing cost ?
cost per
Select one:
O a. OMR35,000
O b. OMR39,000
O COMR20,000
O d. OMR19,000
O e. OMR11,000
The total prime cost of a product was OMR7,000. The variable manufacturing overhead is
calculated based on the number of direct labor hours. The variable manufacturing overhead
hour is four times the direct labor cost per hour. The fixed manufacturing overhead
was OMR4,000. Assuming that direct labor hours were 550 and that the direct labor cost was
40% of direct materials cost, how much is the total manufacturing cost?
cost per
Select one:
O a. OMR35,000
O b. OMR39,000
O COMR20,000
O d. OMR19,000
O e. OMR11,000
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