Kinney Company applies overhead on the basis of 150% of direct labor cost.Job No.176 is increased with $150000 of direct materials costs and $180000 of manufacturing overhead.The total manufacturing costs for Job No.176 is

Question

Quizplus · Accepted Answer

To find the total manufacturing costs, we need to calculate the direct labor cost first. Since overhead is 150% of direct labor cost, we can set up the equation: 1.5 * Direct Labor Cost = $180,000. Solving for Direct Labor Cost gives $120,000. Total manufacturing costs = Direct Materials + Direct Labor + Manufacturing Overhead = $150,000 + $120,000 + $180,000 = $450,000.

Kinney Company Applies Overhead on the Basis of 150% of Direct