Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $80,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

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The direct labor cost can be calculated by dividing the manufacturing overhead by the overhead rate (120%), which gives $100,000. The total manufacturing cost is the sum of direct materials, direct labor, and manufacturing overhead: $80,000 + $100,000 + $120,000 = $300,000.

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