Question

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs: The total manufacturing cost assigned to Job 436 was: $360,000 $390,000 $270,000 $480,000

Answer 1

Answer:

$270,000

Explanation:

Direct cost of dept A:

= (Manufacturing overhead ÷ 200) × 100

= ($80,000 ÷ 200) × 100

= $40,000

Manufacturing overhead of dept B:

= 50% of direct labor cost

= 50% × ($60,000)

= $30,000

Total Manufacturing cost of Job 436:

= (Direct material + Direct labor + manufacturing overhead) of Department A and B

= $50,000 + $40,000 + $80,000 + $10,000 + $60,000 + $30,000

= $270,000

Note: Table is missing from the question, so I attached the required table.