Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are as follows:

Direct materials used $5,000

Direct labor cost $36,800

Predetermined manufacturing overhead rate based on machine hours $17

Direct labor hours worked 3,100

Machine hours used290

What is the manufacturing cost of Job 532?

A.$41,800

B.$94,500

C.$46,730

D. $4,930

C.$46,730

Explanation:

Nadal Corporation manufactures custom molds for use in the extrusion industry. Based on the data available we first see the formula to calculate the total manufacturing cost of the job 532.

In general, sum of all the cost directly or indirectly included in the manufacturing cost. Therefore the formula is as below

Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost.

Direct labor cost $36,800

Direct materials used $5,000

Predetermined manufacturing overhead rate based on machine hours $17 which is = $17 x 290 hours

Manufacturing cots = 4930$

Total Manufacturing Cost = 36800 + 5000 + 4930

Total Manufacturing Cost = 46,730$