Question

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

Answer 1

The total manufacturing costs for Job No. 176 is $450,000.

Step-by-step explanation:

To find the total manufacturing costs for Job No. 176, we need to calculate the direct labor cost and overhead cost. The direct labor cost is the basis for calculating the overhead cost. Since the overhead is applied at 150% of the direct labor cost, we can calculate the direct labor cost by dividing the manufacturing overhead by 150% (or 1.5). In this case, the manufacturing overhead is $180,000, so the direct labor cost is $180,000 / 1.5 = $120,000.

Now we can calculate the total manufacturing costs for Job No. 176 by summing the direct materials cost, direct labor cost, and manufacturing overhead.

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

Total manufacturing costs = $150,000 + $120,000 + $180,000 = $450,000.