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    Wood Co: Job 123 and Total Manufacturing Costs

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    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

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    https://brainmass.com/business/business-management/wood-co-job-total-manufacturing-costs-204155

    Solution Preview

    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 ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the total manufacturing costs associated with Job 123.

    $2.19

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