byte computer company a manufacturing organization has just completed 542790

Allocation of Overhead

Byte Computer Company, a manufacturing organization, has just completed an order that Grater, Ltd., placed for 80 computers. Direct materials, purchased parts, and direct labor costs for the Grater order are as follows:

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Cost of direct materials

$36,750.00

Direct labor hours

220

Cost of purchased parts

$21,300.00

Average direct labor pay rate

$15.25

Overhead costs were applied at a single, plant wide overhead rate of 270 percent of direct labor dollars.

Required

Using the traditional costing method, compute the total cost of the Grater order.

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