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Job #608 used 300 direct labor hours at a rate of $30 per hour. The company applies manufacturing overhead at a rate of 150% of direct labor costs. Calculate the total direct labor cost and the total manufacturing overhead applied to Job #608.Question 15Answera.Direct labour cost: $9,000, Manufacturing overhead: $12,000b.Direct labour cost: $9,000, Manufacturing overhead: $13,500c.Direct labor cost: $10,000, Manufacturing overhead: $13,500d.Direct labor cost: $10,000, Manufacturing overhead: $12,000

Question

Job #608 used 300 direct labor hours at a rate of 30perhour.Thecompanyappliesmanufacturingoverheadatarateof15030 per hour. The company applies manufacturing overhead at a rate of 150% of direct labor costs. Calculate the total direct labor cost and the total manufacturing overhead applied to Job #608.Question 15Answera.Direct labour cost: 9,000, Manufacturing overhead: 12,000b.Directlabourcost:12,000b.Direct labour cost: 9,000, Manufacturing overhead: 13,500c.Directlaborcost:13,500c.Direct labor cost: 10,000, Manufacturing overhead: 13,500d.Directlaborcost:13,500d.Direct labor cost: 10,000, Manufacturing overhead: $12,000

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Solution

To solve this problem, we first need to calculate the total direct labor cost and then the total manufacturing overhead.

Step 1: Calculate the total direct labor cost The total direct labor cost is calculated by multiplying the number of direct labor hours by the rate per hour. In this case, it would be 300 hours * 30/hour=30/hour = 9,000.

Step 2: Calculate the total manufacturing overhead The company applies manufacturing overhead at a rate of 150% of direct labor costs. So, we multiply the direct labor cost by 150% (or 1.5). In this case, it would be 9,0001.5=9,000 * 1.5 = 13,500.

So, the correct answer is: b. Direct labour cost: 9,000,Manufacturingoverhead:9,000, Manufacturing overhead: 13,500

This problem has been solved

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