Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $188,000 of raw materials on credit; issued materials to the production of $215,000 of which $10,000 were indirect. Minstrel incurred a factory payroll of $159,000, of which $20,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are: a. $552,500. b. $612,500. c. $582,500. d. $602,500. e. $562,500.
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $188,000 of raw materials on credit; issued materials to the production of $215,000 of which $10,000 were indirect. Minstrel incurred a factory payroll of $159,000, of which $20,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are: a. $552,500. b. $612,500. c. $582,500. d. $602,500. e. $562,500.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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
Transcribed Image Text:Minstrel Manufacturing uses a job order costing system.
During one month, Minstrel purchased $188,000 of raw
materials on credit; issued materials to the production
of $215,000 of which $10,000 were indirect. Minstrel
incurred a factory payroll of $159,000, of which $20,000 was
indirect labor. Minstrel uses a predetermined overhead rate
of 150% of direct labor cost. The total manufacturing costs
added during the period are:
a. $552,500.
b. $612,500.
c. $582,500.
d. $602,500.
e. $562,500.
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