ACCT - Product Cost and Overhead Rates

achibaby1974

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Joined
Sep 3, 2013
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I'm asked to calculate the product cost.

GIVEN:

Direct Material - $300
Direct Labor (20 hours at $15 per Hour) - $300
Manufacturing overhead (The predetermined rate is $24 per direct-labor hour) - $400
TOTAL = $1000

* Each model requires 20 hours of direct labor.

I have already calculated the departmental predetermined overhead rate. The departmental overhead rate is $30 and it is correct.

I just don't know what to do with it now....

What I did was $30 x 20 hours and that was $600. Then I did $600 + 300 + 300 = $1200. But that's wrong.
emoticon-0106-crying.gif
Any suggestions?

Thanks ahead of time!
 
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