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In: Accounting

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 2 years ago
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