Answer:
Winter Company's total manufacturing costs for the year was $850,000
Explanation:
Manufacturing cost is the cost used to manufacture a product, both direct and indirect cost incurred in manufacturing process are included. It is the total value of material cost, labor cost and overhead cost.
Direct Material Cost = $500,000
Manufacturing overhead applied = $150,000
As we know Manufacturing overhead applied was 75% of direct Labor cost.
Direct Labor cost = Manufacturing overhead applied / 75%
Direct Labor cost = 150,000 / 75% = $200,000
Total Manufacturing Cost = $500,000 + $200,000 + $150,000 = $850,000
