Haight Company incurred direct materials costs of $2500000 during the year. Manu-facturing overhead applied was $450000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Question

Quizplus · Accepted Answer

To find the total manufacturing costs, we need to calculate the direct labor costs first. Since manufacturing overhead is 60% of direct labor costs, we can set up the equation: 0.60 * Direct Labor Costs = $450,000. Solving for Direct Labor Costs gives us $750,000. Total manufacturing costs = Direct Materials + Direct Labor + Manufacturing Overhead = $2,500,000 + $750,000 + $450,000 = $3,700,000.

Haight Company Incurred Direct Materials Costs of $2500000 During the Year