Question

Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct materials costs and $180,000 of manufacturing overhead. the total manufacturing costs for job no. 190 is

Answer 1

The total manufacturing costs for the Job No. 190 is 470,000. To get its direct labor cost, which is the basis of the Henson Company in applying its overhead at the rate of 120%, we need to divide the manufacturing overhead of $180,000 by the rate 120% to get the direct labor cost of 150,000. (180,000/210% = 150,000). To get the total manufacturing cost, you need to add the:direct materials- 140,000direct labor- 150,000manufacturing overhead- 180TOTAL= 470,000- this is the total manufacturing costs (Job No. 190)