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Factory overhead is applied using a plant-wide rate
Course:- Accounting Basics
Reference No.:- EM13700199




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The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:

Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $ 15
Machine hours worked 100 hours

Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000. Job XY5 consists of 50 units. What is overhead cost assigned to Job XY5?

$200

$400

$750

$1,500




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