Question 20

Watson, Inc. applies overhead cost based on direct labor hours. In completing the 200 units in job #120, the company incurred $12,000 in direct materials and 500 direct labor hours at $18 per hour. The predetermined overhead rate is $6 per direct labor hour. What is the total cost of the units in job #120?

a

$21,000

b

$18,600

c

$22,200

d

$24,000