Answer to Question #244964 in Financial Math for Katie

Question

Carl owns Carl's interiors. His direct cost for making furniture in his factory are: raw materials $14,530 and labor $8,532. Factory overhead assessment at 12% of dirt cost. What is the total manufacturing cost for the making the product?

Answer 1

Total manufacturing cost = Direct Materials + Direct Labour + Manufacturing Overheads

Direct materials $= \$14530$

Direct labour $=\$8532$

Manufacturing overheads $=12\%(\$14530 + \$8532) = 2767.44$

Total manufacturing cost $= \$14530 + \$8532 +\$2767.44 = \$25829.44$