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Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $197,000 of raw materials on credit; issued materials to production of $206,000 of which $19,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $29,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period is:

User TheCrzyMan
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1 Answer

6 votes

Answer:

$489,500

Step-by-step explanation:

The computation of the total manufacturing cost added is shown below:

Particulars Amount

Direct material ($206,000 - $19,000) $187000

Direct labor ($150,000 - $29,000) $121,000

Applied manufacturing overhead ($121000 × 150%) $181,500

Total manufacturing cost added $489,500

We simply added the direct material, direct labor and applied manufacturing overhead cost so that the total manufacturing cost added could come

User Behseini
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