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17 November, 04:11

rippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conversion costs. Overhead is applied at a rate of 180% of direct labor costs. How much did the company spend on manufacturing overhead during the year? Multiple Choice $260,000. $468,000. $128,000. $404,444.

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  1. 17 November, 04:33
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    The manufacturing overhead cost during the year=$128,000

    Explanation:

    The manufacturing overhead costs can be calculated using the formula below;

    O=C-M

    where;

    O=manufacturing overhead costs

    C=conversion costs

    M=material costs

    In our case;

    O=unknown

    C=$728,000

    M=$600,000

    replacing;

    O=728,000-600,000=128,000

    O=128,000

    The manufacturing overhead cost during the year=$128,000
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