Question
X Company, a manufacturer, uses a plantwide overhead allocation system with direct labor as the cost driver. The following is budgeted total cost and activity
X Company, a manufacturer, uses a plantwide overhead allocation system with direct labor as the cost driver. The following is budgeted total cost and activity information in 2018:
| Direct materials | $371,324 |
| Direct labor | $490,291 |
| Overhead | $505,000 |
| Research & development | $110,000 |
| Advertising | $59,000 |
| Direct labor hours | 22,748 |
The following information is taken from the job cost sheet for Job A in 2018:
| Direct | Direct | Direct | ||
| Materials | Labor | Labor Hours | Overhead | |
| Total | $51,450 | $75,000 | 723 | ?? |
How much overhead was allocated to Job A [round overhead rate(s) to two decimal places]?
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Accounting Information Systems
Authors: George H. Bodnar, William S. Hopwood
11th Edition
0132871939, 978-0132871938
