Question

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs: Department A Department B Direct materials $50,000 $10,000 Direct labor ? $60,000Manufacturing overhead $80,000 ?The total manufacturing cost assigned to Job 436 was:_________A) $360,000B) $390,000C) $270,000D) $480,000

Answer 1

$270,000

Step-by-step explanation:

Calculation of total manufacturing cost assigned to Job 436

Direct Materials

Dept A $50,000

Dept B $10,000

Direct Labor

Dept A ($80,000 x 1/2) $40,000

Dept B $60,000

Manufacturing Overheads

Dept A $80,000

Dept B ($60,000 x 50%) $30,000

Total $270,000

Therefore,

The total manufacturing cost assigned to Job 436 was $270,000.