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23 April, 13:53

Dale Company, which applies overhead at the rate of 190% of direct labor cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively.

On the basis of this information, the total overhead applied to job no. 101 amounted to:

A. $0.

B. $28,500.

C. $51,300.

D. $70,500.

E. $79,800.

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Answers (1)
  1. 23 April, 16:48
    0
    Option (B) is correct.

    Explanation:

    Given that,

    Dale Company,

    Overhead at the rate = 190% of direct labor cost

    Accumulated direct material = $27,000

    Accumulated direct labor = $15,000

    Hence,

    Total overhead applied:

    = 190% of direct labor cost

    = 1.9 * $15,000

    = $28,500

    Therefore, the total overhead applied to job no. 101 amounted to $28,500.
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