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

Question

Business

Isabelle Finley

11 November, 12:57

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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Answers (1)

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Cannon Klein · Answer 1

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