Warren Company applies overhead based on direct labor cost. During 2014, Warren Company estimated that it would incur $180,000 in manufacturing overhead costs and $120,000 of direct labor costs. In 2014, actual manufacturing overhead cost totaled $150,000 and actual direct labor costs totaled $110,000. If total manufacturing costs were $320,000, what amount of direct materials was used during the period?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Warren Company applies overhead based on direct labor cost. During 2014, Warren Company estimated
that it would incur $180,000 in manufacturing overhead costs and $120,000 of direct labor costs. In 2014,
actual manufacturing overhead cost totaled $150,000 and actual direct labor costs totaled $110,000. If total
manufacturing costs were $320,000, what amount of direct materials was used during the period?
Transcribed Image Text:Warren Company applies overhead based on direct labor cost. During 2014, Warren Company estimated that it would incur $180,000 in manufacturing overhead costs and $120,000 of direct labor costs. In 2014, actual manufacturing overhead cost totaled $150,000 and actual direct labor costs totaled $110,000. If total manufacturing costs were $320,000, what amount of direct materials was used during the period?
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