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:
| 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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