Amount of overhead debited to work in process inventory


For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $450,000 of factory labor costs are incurred of which $120,000 is indirect labor. Actual overhead incurred was $240,000. The amount of overhead debited to Work in Process Inventory should be:

a) $210,000

b) $231,000

c) $330,000

d) $240,000

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Accounting Basics: Amount of overhead debited to work in process inventory
Reference No:- TGS040106

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