The Botosan Factory has determined that its budgeted factory overhead budget for the year is $13,500,000 and budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?

a.$472,500

b.$675,000

c.$236,250

d.$470,630

a.$472,500

Actual factory overhead applied = $ 1.35 * 350,000 = $ 472,500

Explanation:

Choice a is the correct answer. Actual factory overhead applied = $ 1.35 * 350,000 = $ 472,500

Working

Budgeted factory overhead budget for the year is $13,500,000

Budgeted direct labor hours are 10,000,000.

Budgeted factory overhead budget per hour for the year is = $13,500,000/10,000,000 = $ 1.35 per hour

Actual direct labor hours for the period are 350,000

Actual factory overhead applied = $ 1.35 * 350,000 = $ 472,500