Homework Answers
Answer is $231
Direct materials cost = $150
Direct labor cost = Direct labor hours * Direct labor rate per
hour
Direct labor cost = 3 * $12
Direct labor cost = $36
Predetermined overhead rate = Estimated overhead / Estimated
direct labor hours
Predetermined overhead rate = $42,000 / 2,800
Predetermined overhead rate = $15 per direct labor hour
Overhead applied = Predetermined overhead rate * Direct labor
hours
Overhead applied = $15 * 3
Overhead applied = $45
Total cost = Direct materials cost + Direct labor cost +
Overhead applied
Total cost = $150 + $36 + $45
Total cost = $231
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