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Home > Business & Careers > Accounting   »   Traditional Costing Approach

 
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Old Jan 16, 2008, 07:25 AM
essamm17
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Traditional Costing Approach

A manufacturing company has just completed an order that Grater, Ltd., placed for 80 computers.

Cost of direct materials $36,750
Cost of purchased parts $21,300
Direct labor hours (DLH) 220
Average direct labor pay rate $15.25

Traditional costing data:
Overhead costs were applied at a single, plantwide overhead rate of 270 percent of direct labor hours.

Question: Using the traditional costing approach, compute the total cost of the Grater order.

If there is any additional information you think is missing/needed, please let me know.

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