Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.
Company | Case High School Job |
Direct materials | $40,000 | $2,000 |
Manufacturing overhead costs | $45,000 |
Machine-hours | 100,000 | mh | 900 | mh |
What are the total manufacturing costs of this job?
◦ $2,400
◦ $2,805
◦ $2,895
◦ $1,995