To calculate the total manufacturing cost associated with Job No. 678 for 2022, let us break down the costs step by step based on the provided information:

1. Understanding the formula

The total manufacturing cost includes: $\text{Total Cost} = \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead}$

2. Identifying the given data

From the image:

• Direct materials: ₱22,500
• Direct labor (ABC): ₱7,200
• Factory overhead (XYZ): ₱10,800

Additionally, the overhead application rates are based on direct labor costs as shown in the budget:

• For ABC: \text{Overhead Rate} = \frac{\text{Factory Overhead}}{\text{Direct Labor}} = \frac{540,000}{180,000} = 3 \ (\text{or 300% of direct labor cost})
• For XYZ: \text{Overhead Rate} = \frac{\text{Factory Overhead}}{\text{Direct Labor}} = \frac{360,000}{720,000} = 0.5 \ (\text{or 50% of direct labor cost})

3. Calculating applied overhead

• For ABC (Job No. 678): $\text{Applied Overhead (ABC)} = \text{Direct Labor (ABC)} \times \text{Overhead Rate (ABC)} = 7,200 \times 3 = ₱21,600$

• For XYZ: The factory overhead for XYZ is directly given as ₱10,800.

4. Adding up the costs

$\text{Total Manufacturing Cost} = \text{Direct Materials} + \text{Direct Labor (ABC)} + \text{Applied Overhead (ABC)} + \text{Factory Overhead (XYZ)}$ $= 22,500 + 7,200 + 21,600 + 10,800 = ₱62,100$

5. Final answer

The total manufacturing cost associated with Job No. 678 for 2022 is ₱62,100. However, none of the provided options exactly match this. The closest options might need a clarification.

Would you like me to double-check or elaborate further?

5 Related Questions:

1. How are overhead rates calculated for manufacturing departments?
2. Why do companies use job order costing systems?
3. What factors could affect the accuracy of applied overhead costs?
4. How does direct labor impact the calculation of total manufacturing cost?
5. What are the advantages of predetermined overhead rates?

Tip: Always verify if costs like factory overhead are applied directly or derived using departmental rates.