Instructions

On the basis of the foregoing data answer the following question.

If manufacturing overhead is applied on the basis of direct labor cost, what overhead

rate was used in each year?

a.Last year 60%;this year 65%

b.Last year 70%;this year 55%

c.Last year 70%;this year 75%

d.Last year 65%this year 75%

Job No. 99 For 2,000 Units Date Direct Materials Direct Labor Manufacturing Overhead Beg. bal. Jan. 1 4,105 6,000 4,200 8 6,000 12 8,500 6,375 25 2,000 27 4,000 3,000 12,105 18,500 13,575 Cost of completed job: Direct materials $ 12,105 Direct labor 18,500 Manufacturing overhead 13,575 Total cost $44,180 Unit cost ($44,180 / 2,000) $ 22.09