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26 February, 10:12

Bramble Corp. applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $450000 of direct materials costs and $300000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is: $900000 $1050000 $750000 $1200000

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  1. 26 February, 10:17
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    The correct option is A

    Explanation:

    The total manufacturing cost of the Job will be computed as:

    Total manufacturing cost = Materials + Overhead + labor

    where

    Materials amounts to $450,000

    Overhead amounts to $300,000

    Labor is computed as:

    Labor = Overhead cost * 100 / 200

    Labor = $300,000 * 100 / 200

    Labor = $150,000

    Putting the values above:

    Total manufacturing cost = $450,000 + $300,000 + $150,000

    Total manufacturing cost = $900,000
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