The total prime cost of a product was OMR6,500. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,500. Assuming that direct labor hours were 600 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR18,500 O b. OMR11,000 O c. OMR43,500 O d. OMR16,500 O e. OMR39,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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The total prime cost of a product was OMR6,500. The variable manufacturing overhead is calculated based on
the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct
labor cost per hour. The fixed manufacturing overhead was OMR4,500. Assuming that direct labor hours were
600 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost?
Select one:
O a. OMR18,500
O b. OMR11,000
O c. OMR43,500
O d. OMR16,500
O e. OMR39,000
Transcribed Image Text:The total prime cost of a product was OMR6,500. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,500. Assuming that direct labor hours were 600 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR18,500 O b. OMR11,000 O c. OMR43,500 O d. OMR16,500 O e. OMR39,000
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