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Langston Automotive Accessories applies overhead using a combined rate for fixed and variable OH. The rate is 250 percent of direct labor cost. During the first three months of the current year, actual costs incurred were as follows:
Direct Labor Cost Actual OverheadJanuary $180,000 $440,000February 165,000 420,400March 170,000 421,000
a. What amount of overhead was applied to production in each of the three months?
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Krew Kutter's net income was $100,000 last year. The company has 10,000 shares of common stock and 4,000 shares of $200 par value, 6 percent preferred stock outstanding.
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