Crane Company applies overhead on the basis of 120% of direct labor cost. Job No. 190...

Crane Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $350000 of direct materials costs and $150000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

$500000.

$570000.

$625000.

$680000.

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Expert Solution

Working Notes:
	Calculation of Direct Labor cost
	Manufacuring overhead (120% of Direct labor) =	$ 1,50,000
	Direct Labor = $ 150,000 X 100 / 120 =	$ 1,25,000



Solution:
	Crane Company
	Caclulation of Total Manufacturing Cost
		Amount

	Direct Material Cost	$ 3,50,000
	Direct Labor Cost	$ 1,25,000
	Prime Cost	$ 4,75,000
	Add : Overhead Expenses
	Manufacturing overhead	$ 1,50,000

	Total Manufacturing Cost	$ 6,25,000


	Answer = Option 3 = $ 625,000

ekkarill92 answered 1 year ago

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