Haight Company incurred direct materials costs of $1,000,000 during the year. Manu-facturing overhead applied was $180,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

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Manufacturing overhead applied is 60% of direct labor costs. Since direct materials costs are $1,000,000, direct labor costs must be $180,000 / 0.60 = $300,000. Total manufacturing costs are $1,000,000 + $300,000 + $180,000 = $1,480,000.

Haight Company Incurred Direct Materials Costs of $1,000,000 During the Year