Final answer:
To find Emley Company's total manufacturing costs, calculate direct labor by dividing manufacturing overhead by the predetermined overhead rate, then add direct materials and manufacturing overhead. The total manufacturing costs amount to $2,450,000.
Step-by-step explanation:
The question asks for determining the total manufacturing costs for Emley Company. Since the manufacturing overhead is applied based on direct labor costs, we can infer that the direct labor costs can be calculated using the given predetermined overhead rate of 70%. The overhead applied is $700,000, so we can find direct labor costs by dividing the overhead by the overhead rate. After calculating direct labor costs, the total manufacturing costs can be found by adding direct materials costs, manufacturing overhead, and direct labor costs together.
To calculate the direct labor costs: $700,000 (manufacturing overhead) \(\div\) 0.70 (overhead rate) = $1,000,000.
Finally, to find the total manufacturing costs: $750,000 (direct materials costs) + $700,000 (manufacturing overhead applied) + $1,000,000 (direct labor costs) = $2,450,000.
This calculation provides us with the total manufacturing costs for the year for Emley Company.