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Question: 1. NewCo. is a manufacturer that employs the job-o...

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1. NewCo. is a manufacturer that employs the job-order costing system. The job-cost sheet for order number 11, which was started and completed in March, indicated that $40 of materials, 20 hours of direct labor, $100 of direct labor, and 10 machine hours were charged to the job. Order number 11 included 98 units. NewCo. applies overhead based on direct labor hours. For March, all direct labor was charged at the same rate, and NewCos direct labor rate variance was $0. Additional information for March is as follows:

Budgeted direct labor cost

$18,000

Budgeted overhead

39,600

Actual direct labor cost

17,200

Actual overhead

35,000

How much overhead should be applied to order number 11?

$220

$194
$204
$230

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