Question: Byte Computer Company, a manufacturing organization, has just completed an order that Grater, Ltd., placed for 80 computers. Direct materials, purchased parts, and direct labor

Byte Computer Company, a manufacturing organization, has just completed an order that Grater, Ltd., placed for 80 computers. Direct materials, purchased parts, and direct labor costs for the Grater order are as follows:

Cost of direct materials .....$36,750.00

Cost of purchased parts......$21,300.00

Direct labor hours............220

Average direct labor pay rate.......$15.25

Other operating costs are as follows:

Traditional costing data:

Overhead costs were applied at a single, plant-wide overhead rate of 270 percent of direct labor dollars.


Required

Using the traditional costing method, compute the total cost of the Grater order.


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