Minstrel Manufacturing Uses a Job Order Costing System

Multiple Choice

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
- The total manufacturing costs added during the period are:

A) $470,000.
B) $540,000.
C) $440,000.
D) $570,000.
E) $500,000.