Answer:
The correct answer is D.
Explanation:
Giving the following information:
Direct materials $ 2,428
Direct labor-hours 75 labor-hours
Direct labor wage rate $ 20 per labor-hour
Machine-hours 132 machine-hours
The Corporation applies manufacturing overhead based on machine-hours. The predetermined overhead rate is $21 per machine-hour.
To calculate the total cost, first, we need to calculate the cost of direct labor and allocated overhead:
direct labor= 75 hours* $20= $1,500
Allocated overhead= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= $21*132= $2,772
Now, we can calculate the total cost:
Total cost= direct material + direct labor + manufacturing overhead
Total cost= 2,428 + 1,500 + 2,772= $6,700
