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Question 35 --/1 View Policies Current Attempt in Progress Bonita Industries applies overhead on the basis of 120% of direct

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Answer #1

Answer: $437,500

Explanation:

Mamufacturing cost = Direct material + Direct labor + Manufacturing overhead

Direct material = $300,000

Direct labor = $75,000 / 120% = $62,500

Manufacturing overhead = $75,000

Manufacturing cost = $300,000 + $62,500 + $75,000 = $437,500 (Answer)

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