In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs $210,000 of factory labor costs, of which $180,000 is direct labor and $30,000 is indirect labor. The actual overhead incurred was $200,000. The amount of overhead debited to Work in Process Inventory should be:

a. $200,000

b. $168,000

c. $144,000

d. $160,000.

Question

Bradyn Zhang

Business

17 November, 09:25

In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs $210,000 of factory labor costs, of which $180,000 is direct labor and $30,000 is indirect labor. The actual overhead incurred was $200,000. The amount of overhead debited to Work in Process Inventory should be:

a. $200,000

b. $168,000

c. $144,000

d. $160,000.

+2

Answers (1)

Know the Answer?

Amy Terrell · Answer 1

c. $144000.

Explanation:

the predetermined overhead rate = 80% of direct labour costs

The amount of overhead debited to Work in Process Inventory is:

(80%) (180000)

= $ 144000

Therefore, The amount of overhead debited to Work in Process Inventory should be $144000.