Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $90,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

Question

Quizplus · Accepted Answer

Direct labor cost = (Manufacturing overhead / 200%) = $120,000 / 2 = $60,000
Total manufacturing cost = Direct materials cost + Direct labor cost + Manufacturing overhead
= $90,000 + $60,000 + $120,000
= $270,000.

Therefore, choice C is correct.

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