Knox applies overhead on the basis of 400% of direct labor cost. Job No. 176 is charged with $120,000 of direct material costs and $130,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is
Select one:
a. $282,500.
b. $412,500.
c. $250,000.
d. $354,000.
e. not able to be determined from the provided information.
Direct material cost = $120,000
manufacturing overhead rate = 400% of direct labor cost
Manufacturing overhead = $130,000
Manufacturing overhead = Direct labor cost x manufacturing overhead rate
130,0000 = Direct labor cost x 400%
Direct labor cost = 130,000/400%
= $32,500
Total material cost = Direct material cost + Direct labor cost + Manufacturing overhead
= 120,000 + 32,500 + 130,000
= $282,500
Correct option is (a)
kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.
Get Answers For Free
Most questions answered within 1 hours.