Aloha Manufacturing Co. has two departments: Cooking and Bottling. For the period just ended, Aloha's costs were: direct materials, $140,000; direct labor, $80,000; and indirect manufacturing, $100,000. Costs assigned to the Cooking department were: direct materials, 50%; direct labor, 80%. Indirect costs are assigned in the same proportion as direct labor cost. The total cost incurred in the Cooking department is:

Question

Quizplus · Accepted Answer

The Cooking department's costs are calculated as follows: Direct materials: 50% of $140,000 = $70,000; Direct labor: 80% of $80,000 = $64,000; Indirect costs: 80% of $100,000 = $80,000. Total cost = $70,000 + $64,000 + $80,000 = $214,000.