Allocation of Overhead
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 |
Direct labor hours |
220 |
|
Cost of purchased parts |
$21,300.00 |
Average direct labor pay rate |
$15.25 |
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.