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24 August, 15:34

Slick Heating Company has $492,000 in direct labor expense, $318,000 in direct material expense, $24,000 in factory rent, and $98,000 in production supervisory overhead. What will be the total product cost under activity-based costing?

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  1. 24 August, 18:18
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    Answer: Total Product Cost = $932,000

    Explanation:

    Given:

    Direct labor expense = $492,000

    Direct material expense = $318,000

    Factory rent = $24,000

    Production supervisory overhead = $98,000

    We can compute the total product cost using the following formula:

    Total product cost = Direct labor expense + Direct material expense + Factory rent + Production supervisory overhead

    Total product cost = $492,000 + $318,000 + $24,000 + $98,000

    Total Product Cost = $932,000
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