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 cost per 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? Select one: a. OMR35,000 O b. OMR39,000 OC OMR20,000 O d. OMR19,000 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 cost per 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? Select one: a. OMR35,000 O b. OMR39,000 OC OMR20,000 O d. OMR19,000 e. OMR11,000
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...
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