Answer the following questions using the information below:
Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job.

-What are the total manufacturing costs of this job?
A)$1,200
B)$1,470
C)$1,650
D)$1,920

Question

Answer the following questions using the information below:
Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job.
 
-What are the total manufacturing costs of this job?
A)$1,200 
B)$1,470 
C)$1,650 
D)$1,920

Quizplus · Accepted Answer

The total manufacturing cost of the Winfield High School band jacket job can be calculated as follows:
Direct materials = $80
Direct labor = $400
Manufacturing overhead cost = $990 (based on machine-hours)
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead cost
= $80 + $400 + $990
= $1,470

Therefore, the total manufacturing cost of this job is $1,470 (Option B).
The question does not provide any additional information to indicate the best choice(s) needed for the answer.

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