Question

Sunland Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $320000 of direct materials costs and $410000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is $1140000. $1050000. $935000. $730000.

Answer 1

Answer:

$935,000

Explanation:

Calculation for Sunland company total manufacturing costs for Job No. 501

Using this formula

Total Manufacturing cost =(Manufacturing Overhead/Percentage of Overhead basis)+Direct material +Manufacturing overhead

Let plug in the formala

Total Manufacturing Overhead=($410,000/2)= $205,000 + $320,000 + $410,000

Total Manufacturing overhead =$935,000

Therefore Sunland company total manufacturing costs for Job No. 501 will be $935,000