Multiple Choice
Ocean Technical Services applies manufacturing overhead costs to products at a predetermined rate of $70 per direct labor hour. One customer has requested a bid on a special order of a product. Estimates for this order include: direct materials $50,000; direct labor 900 direct labor hours @ $30 per hour; and a markup rate of 25%.
-Manufacturing overhead cost estimates for this special order total:
A) $7,000.
B) $36,000.
C) $45,990.
D) $63,000.
Correct Answer:
Verified
Correct Answer:
Verified
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