Calgary Manufacturing Company makes chairs and desks. The following costs were incurred in making its products during its first year of operation: Chairs Desks Total DM $4,000 $6,000 $10,000 DL $12,000 $8,000 $20,000 Also the company incurred $14,000 of employee benefits cost. Since these overhead costs are driven by the use of labor they are allocated to products based on the direct labor dollars. Based on this information alone the total cost of making the DESKS is:

A) $16,000
B) $19,600
C) $24,400
D) None of the answers is correct


B) $19,600

Business

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Business

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Business