I'm having a hard time figuring out where to start with all of this information (provided below). Next to the question I have put what I've been able to figure out so far, but I'm not confident in my answer. Any help you can provide in the process would be extremely helpful! I'm not looking for answers as more so the process and numbers which I need to be using.

Question: Compute the total cost of manufacturing one mudroom storage bench using direct materials cost as the allocation base for manufacturing overhead.

I have predetermined overhead calculated to be $1.10 using direct materials as the allocation base.

I know how to calculate it based on labor because that's what we've done in class but direct materials is throwing me for a loop.

Direct Materials = $5200

Direct Labor = $3500

Manufacuring OH = ? (I thought $5200 x $1.10 didn't sound right to go here)

Total Manufacturing cost = $5200+3500+?

Number of Mudrooms = 12

Cost per Mudroom = Total manufacturing cost/12 mudrooms

Numerical Info below:

Maryville Manufacturing designs and builds custom mudroom storage benches.All of the mudroom storage benches are constructed with rustic hickory.Its budgeted manufacturing costs for the 2018 year are as follows.

Overhead Cost Pools Amount

Purchasing $45,000

Handling materials 50,000

Production (cutting, milling, finishing) 130,000

Setting up machines 85,000

Inspecting 60,000

Inventory control (raw materials and finished goods) 80,000

Utilities 100,000

Total budgeted overhead costs $550,000

For the last 5 years, Maryville Manufacturing has been charging overhead to products on the basis of materials cost.For the year 2018, materials cost of $500,000 were budgeted.

Jim Johnson, owner-manager of Maryville Manufacturing, recently directed his accountant, Ledger Kaufman, to implement the activity-based costing system that he has repeatedly proposed.At Jim's request, Ledger and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools.

Overhead Cost Pools

Activity Cost Drivers Expected Use of Cost Drivers

Purchasing Number of orders 500

Handling materials Number of moves 5,000

Production (cutting, milling, finishing) Direct labor hours 65,000

Setting up machines Number of setups 1,000

Inspecting Number of inspections 4,000

Inventory control (raw materials&finished goods)Number of components 40,000

Utilities Square feet occupied 50,000

Doug Russell, sales manager, has received an order for 12 custom mudroom storage benches from Homes by Kathy.At Doug's request, Ledger prepares costs estimates for producing 12 mudroom storage benches so Doug can submit a contract price per mudroom storage bench to Homes by Kathy.He accumulates the following data for the production of 12 mudroom storage benches.

Direct materials $5,200

Direct labor $3,500

Direct labor hours 200

Number of purchase orders 3

Number of material moves 32

Number of machine setups 4

Number of inspections 20

Number of components 640

Number of square feet occupied 320