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
Direct Materials $ 4,000 $ 6,000 $ 10,000 Direct Labor 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 the products based on the direct labor dollars. Based on this information alone the total cost of making chairs is.
I know the correct answer is $24,400. Would somebody please explain how to get this answer?
Thank you!

Various forms of non-wage remuneration that are given to employees in addition to their regular earnings or salaries are included in benefit plans and benefits in kind. Any advantages offered to employees in addition to their pay are considered benefits. Medical, health, and life insurance, retirement benefits, paid time off, and fringe benefits are the most often offered perks. Benefits can be quite worthwhile.

A = Direct materials = $4,000

B = Direct labor = $12,000

C = $14,000 * 12,000/20,000 = overhead allocated = $8,400

D = A+B+C = Total cost for making chairs = $24,000

Hence the total cost for making chairs is, $24,000

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