00:02
Hello students, in this question, we have to compute the total production cost in the month of january.
00:07
So, for computing that the formula is total production cost is equal to direct material cost, sum of all these costs, so direct labor cost plus manufacturing overhead cost.
00:17
Sum of all these will be included here.
00:20
Now, in the given question, we have been given selling price of $70 given, direct material cost is 20 per unit, direct labor hours per unit is 0 .5, manufacturing overhead given to us 10 per unit and we know that manufacturing overhead is equal to 80 % of direct labor rate which is 0 .5.
00:46
So, it will give us $10.
00:48
Therefore, the manufacturing overhead per unit, manufacturing overhead per unit will be 80 % of 10.
01:00
So, it will give us $8.
01:04
Now, we will sum up all these figures to get the total production cost...