How much overhead was incurred for the month

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Calculation of overheads for the month.

The following are the account balances for the Dilone Company for the month of November:

 

November 1

November 30

 

Molding 

Assembly 

Manufacturing overhead cost 

$1,200,000

$800,000

Machine hours 

10,000

4,000

Direct labor hours 

12,000

16,000

Raw materials inventory

$400

$500

Work in process 

1,900

7,500

Finished goods inventory 

15,000

5,000

Materials used 

 

$44,000

Direct labor 

 

25,000

Overhead under applied variance 

 

300

The overhead rate is 25 percent of raw materials used plus 50 percent of direct labor costs.How much overhead was incurred for the month?

a. $23,500
b. $23,800
c. $25,000
d. $12,200

Reference no: EM1311618

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