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dexar [7]
2 years ago
11

rippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conv

ersion costs. Overhead is applied at a rate of 180% of direct labor costs. How much did the company spend on manufacturing overhead during the year? Multiple Choice $260,000. $468,000. $128,000. $404,444.
Business
1 answer:
Andru [333]2 years ago
5 0

Answer:

The manufacturing overhead cost during the year=$128,000

Explanation:

The manufacturing overhead costs can be calculated using the formula below;

O=C-M

where;

O=manufacturing overhead costs

C=conversion costs

M=material costs

In our case;

O=unknown

C=$728,000

M=$600,000

replacing;

O=728,000-600,000=128,000

O=128,000

The manufacturing overhead cost during the year=$128,000

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