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major brands, inc., a clothing manufacturer, is planning to sell 9,000 jackets during february and its production is estimated at 8,700 jackets during february. each jacket requires 4.4 yards of fabric at $4.00 per yard and 0.25 direct labor hours at $12 per hour. manufacturing overhead is applied at 110% of direct labor costs. what is the total amount to be budgeted for manufacturing overhead for february?



Answer :

abiolataiwo2015

If major brands, inc., a clothing manufacturer, is planning to sell 9,000 jackets during february and its production is estimated at 8,700 jackets during february.  the total amount to be budgeted for manufacturing overhead for february is $26,100.

How to find the budgeted for manufacturing overhead for February?

Using this formula to find the Total direct labor cost

Total direct labor cost =Estimated production × Direct labor hours × Price for Direct  labor hours

Let plug in the formula

Total direct labor cost = 8,700 jackets x 0.25 hours x $12 per hour

Total direct labor cost = $26,100

Therefore the Total direct labor cost is $26,100.

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