Sunland Company incurred direct materials costs of $91000 during the year. Manufacturing overhead applied was $86000 and is applied based on direct labour costs. The predetermined overhead rate is 80%. How much are Sunland Company's total manufacturing costs for the year? O $245800 O $198500 O $177000 O $284500

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...
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Sunland Company incurred direct materials costs of $91000 during the year. Manufacturing
overhead applied was $86000 and is applied based on direct labour costs. The predetermined
overhead rate is 80%. How much are Sunland Company's total manufacturing costs for the year?
$245800
O $198500
O $177000
$284500
Transcribed Image Text:Sunland Company incurred direct materials costs of $91000 during the year. Manufacturing overhead applied was $86000 and is applied based on direct labour costs. The predetermined overhead rate is 80%. How much are Sunland Company's total manufacturing costs for the year? $245800 O $198500 O $177000 $284500
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