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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