Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140000 of direct materials costs and $180000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

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To find the total manufacturing costs, calculate the direct labor cost first. Since overhead is 120% of direct labor, let direct labor be x. Then, 1.2x = $180,000, so x = $150,000. Total manufacturing costs = direct materials + direct labor + overhead = $140,000 + $150,000 + $180,000 = $470,000.

Henson Company Applies Overhead on the Basis of 120% of Direct