Biology Forums - Study Force

Grib Corporation 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% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs:

	Department A	Department B
Direct materials	$ 50,000	$ 10,000
Direct labor	?	$ 60,000
Manufacturing overhead	$ 80,000	?

The total manufacturing cost assigned to Job 436 was:

▸ $360,000

▸ $390,000

▸ $270,000

▸ $480,000

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