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Wood Co: Job 123 and Total Manufacturing Costs

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

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