Question

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $190,000 of raw materials on credit; issued materials to production of $213,000 of which $12,000 were indirect. Minstrel incurred a factory payroll of $157,000, of which $22,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period is: Multiple Choice $571,500. $593,500. $605,500. $538,500. $550,500.

Answer 1

$538,500

Step-by-step explanation:

Calculation to determine what The total manufacturing costs added during the period is:

Total manufacturing costs=($213,000-$12,000)+($157,000-$22,000)+($157,000-$22,000*1.5)

Total manufacturing costs=$201,000 + $135,000 + ($135,000 × 1.5)

Total manufacturing costs=$201,000 + $135,000+$202,500

Total manufacturing costs= $538,500

Therefore The total manufacturing costs added during the period is: $538,500