Wood Co. uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.
Narrative Play therapy
October 17, 2020Controversies in Globalization
October 17, 2020Wood Co. uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.
Wood Co. 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% for Department A and 50% for Department B. Job 123, started and completed during the year, was charged with the following costs:
DEPT A DEPT B
Direct materials $25,000 $5,000
direct labor ? $30,000
manufacturing overhead $40,000 ?
The total manufacturing costs associated with Job 123 should be:
A) $135,000
B) $180,000
C) $195,000
D) $240,000
