Bramble Corp. applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240000 of direct materials costs and $300000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

Question

Fletcher Garner

Business

28 July, 12:52

Bramble Corp. applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240000 of direct materials costs and $300000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

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Mariela · Answer 1

Total cost = $690,000

Explanation:

Giving the following information:

Bramble Corp. applies overhead based on 200% of direct labor cost. Job No. 501 is charged with $240000 of direct materials costs and $300000 of manufacturing overhead.

We know that the total cost is the sum of direct material, direct labor and allocated overhead. We need to calculate the direct labor cost.

Direct labor = allocated overhead/2

Direct labor = 300,000/2 = 150,000

Total cost = 240,000 + 150,000 + 300,000 = $690,000