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Jana Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60...

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Question

Accounting

Jana Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order. Estimates for this order include: Direct materials $40,000 and 500 direct manufacturing labor-hours at $20 per hour. Manufacturing overhead cost estimates for this special order total:

a.

$40,000

b.

$30,000

c.

$10,000

d.

$36,000

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