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

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

Cost of direct materials

$36,750

Cost of purchased parts

$21,300

Direct labor hours

200

Average direct labor pay rate

$16

Overhead costs were applied at a single, plantwide overhead rate of 270 percent of direct labor dollars. Compute the total cost of the Grater order.

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