Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180000 of direct materials costs and $200000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

Question

Quizplus · Accepted Answer

The total manufacturing costs for Job No. 305 include direct materials, direct labor, and manufacturing overhead. Given that the manufacturing overhead is 200% of direct labor cost, we can calculate the direct labor cost as $200,000 / 200% = $100,000. Therefore, the total manufacturing costs are $180,000 (direct materials) + $100,000 (direct labor) + $200,000 (manufacturing overhead) = $480,000.

Simpson Company Applies Overhead on the Basis of 200% of Direct