Bonita Industries applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $300000 of direct materials costs and $75000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

The total manufacturing costs of job 176 is $425,000.00

Explanation:

The total manufacturing costs for Job No. 176 is given by:

Total manufacturing costs=Direct materials+Direct labor+Manufacturing overhead.

Direct materials=$300000

Manufacturing overhead = $75000

Direct labor is unknown

The direct can be calculated using the formula:

Manufacturing overhead = 150% of direct labor

Assuming direct labor cost is X

$75000=150%*X

X=$75000/150%

X=75000/1.5

X=$50000

Since the cost of labor is now known, total costs of the job is computed thus:

Total costs=$300000+$50000+$75000

Total costs of job 176=$425000