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Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectcost rate of $90 per direct manufacturing laborhour. A retail outlet has requested a
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Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectcost rate of $90 per direct manufacturing laborhour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $53,000; 300 direct manufacturing laborhours at $25 per hour; and a 40% markup rate on total manufacturing costs.
Estimated total product costs for this special order equal ________.
A.
$87,500
B.
$80,000
C.
$122,500
D.
$60,500
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