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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.

Respuesta :

Answer:

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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