Question
Bens Business uses departmental overhead rates for the application of overhead costs. There are two departments, Fabrication and Packaging. Fabrication is applied based on machine
Bens Business uses departmental overhead rates for the application of overhead costs. There are two departments, Fabrication and Packaging. Fabrication is applied based on machine hours (MH) and Packaging is applied based on direct labor hours (DLH). The following information for estimated total overhead costs and activity levels for the year are as follows: Department Total OH DLH MH Fabrication $200,000 10,000 25,000 Packaging 300,000 30,000 3,000 Total $500,000 45,000 28,000 Job 200 had the following activity: Total direct labor hours 33 DLH Total machine hours 12 MH How much overhead was applied to Job 200? $426 $314 $229 $184
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