Question

Bonita Industries applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $300000 of direct materials costs and $75000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

Answer 1

The total manufacturing costs of job 176 is $425,000.00

Step-by-step explanation:

The total manufacturing costs for Job No. 176 is given by :

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

Direct materials=$300000

Manufacturing overhead =$75000

Direct labor is unknown

The direct can be calculated using the formula:

Manufacturing overhead =150% of direct labor

Assuming direct labor cost is X

$75000=150%*X

X=$75000/150%

X=75000/1.5

X=$50000

Since the cost of labor is now known,total costs of the job is computed thus:

Total costs=$300000+$50000+$75000

Total costs of job 176=$425000