Answer:
a) 25000 labor x 150% rate =37,500 overhead
b) total manufacturing cost:
12,000 +25,000 + 37,500 = 74,500
d) labor = overhead / 1.5 = 18000 / 1.5 = 12,000
c) total less labor les maufacturing = materials
45,000 - 18,000 - 12,000 = 15,000
e) to solve for labor we express overhead in function of labor:
materials + labor + 1.5labor = total manufacturing
15,000 + 2.5 labor = 35,000
labor = (35,000 - 15,000) / 2.5 = 8000
f) overhead: 8,000 x 1.5 = 12,000
Table to fill:
Direct Material used
12,000 // c // 15,000
Direct labor
25,000 // d // e
Manufacturing overhead applied
a // 18,000 // f
Total current manufacturing costs
b // 45,000 // 35,000
Explanation:
