EXERCISE 3-17 (30 MINUTES)

4. Direct materials ... $ 8,500

Direct labor ... 2,700

Overhead applied ($8,500 × 160%) ... 13,600

Total manufacturing cost ... $24,800

$24,800 × 125% = $31,000 price to the customer.

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Solutions Manual, Chapter 3 115

Problem 3-27 (continued)