Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs: Dept. A Dept. B Direct materials $ 50,000 $ 10,000 Direct labor? $ 60,000 Manufacturing overhead $ 80,000? The total manufacturing cost assigned to Job 436 was:

Question

Snowflake

Business

4 November, 02:40

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs: Dept. A Dept. B Direct materials $ 50,000 $ 10,000 Direct labor? $ 60,000 Manufacturing overhead $ 80,000? The total manufacturing cost assigned to Job 436 was:

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Liberty Sweeney · Answer 1

Correct answer is C $270,000

Explanation:

Direct cost of dept A = (Manufacturing overhead / 200) * 100 = ($80,000/200) * 100 = $40,000

Manufacturing overhead of dept B = 50% * ($60,000) = $30,000

Total Manufacturing cost of Job 436 = $50,000 + $40,000 + $80,000 + $10,000+$60,000+$30,000 = $270,000