Blackwood 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