Pen enterprises estimated its overhead at $750,000 and direct labor hours at 15,000 for the the...

Pen enterprises estimated its overhead at $750,000 and direct labor hours at 15,000 for the the current fiscal month. determine the total product cost that had direct labor cost of $25,000, direct material costs of $20,000, and 2,000 direct labor hours.

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Expert Solution

The total product cost is $795,000.

EXPLANATION:

FORMULA USED :

Total Product Cost = Direct Material Cost + Direct Labor Cost + Overhead Cost.

Given ,

Direct Material Cost = $20,000

Direct Labor Cost = $25,000

Overhead Cost. = $750,000

Therefore,

Total Product Cost = $20,000 + $20,000 + $750,000

Total Product Cost = $795,000

Hence, the total product cost is $795,000.

Rahul Sunny answered 2 years ago

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