Company XYZ made the following projections for 2020:

Indirect manufacturing costs $ 200,000

Direct labor hours 50,000

The company uses normal costing and determines the allocation rate (overhead

application rate) based on the number of direct labor hours. XYZ Companies used 3,000

direct labor hours during the month of May and incurred $ 8,000 of indirect costs of

manufacture.

1. How much are the indirect manufacturing costs assigned during the month of

May?

a. $ 12,000

b. $ 8,000

c. $ 4,000

d. $ 6,000