Answer:
Total cost= $150,000
Explanation:
Giving the following information:
Tektron Industries applies overhead on the basis of 200% of direct labor cost. Job No. 275 is charged with $30,000 of direct materials costs and $40,000 of manufacturing overhead.
First, we need to calculate the allocated overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2*40,000= $80,000
Now, we can calculate the total job cost:
Total cost= direct material + direct labor ´allocated overhead
Total cost= 30,000 + 40,000 + 80,000= $150,000
