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 9,000, Manufacturing overhead: 9,000, Manufacturing overhead: 10,000, Manufacturing overhead: 10,000, Manufacturing overhead: $12,000
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 * 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 13,500.
So, the correct answer is: b. Direct labour cost: 13,500
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