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24 July, 18:39

The following information is provided for the year: Actual direct labor hours worked 36,000 Budgeted overhead $300,000 Budgeted direct labor hours 30,000 Actual overhead costs incurred $360,000 If normal costing is used, the amount of overhead applied for the year is:

Group of answer choices

a. $299,880

b. $300,000

c. $380,000

d. $360,000

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Answers (1)
  1. 24 July, 18:50
    0
    Option (D) is correct.

    Explanation:

    Overhead rate = Budgeted overhead : budgeted direct labor hour

    = $300,000 : 30,000

    Overhead rate = $10 per labor hour

    Overhead applied:

    = Overhead rate * Actual direct labor hours worked

    = $10 per labor hour * 36,000

    = $360,000

    Therefore, the amount of overhead applied for the year is $360,000.
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