#1 chin company incurred direct materials costs of $300,000 during the year. manufacturing overhead rate is 70%. how much are chin company total manufacturing costs for the year?
To find the total manufacturing costs for the year, we need to add together the direct materials costs and the manufacturing overhead costs.
First, let's calculate the manufacturing overhead costs. The manufacturing overhead rate is given as 70%.
Manufacturing overhead costs = Direct materials costs * Manufacturing overhead rate
= $300,000 * 70%
= $300,000 * 0.70
= $210,000
Now, let's add the direct materials costs and the manufacturing overhead costs:
Total manufacturing costs = Direct materials costs + Manufacturing overhead costs
= $300,000 + $210,000
= $510,000
Therefore, the Chin Company's total manufacturing costs for the year amount to $510,000.