A manufacturing company allocates overhead at a fixed rate


Question - A manufacturing company allocates overhead at a fixed rate of $30 per hour based on direct labor hours. During the month, total overhead incurred was $150,000, and the total direct labor hours worked was 4,000. Job number 5-25 had 600 hours of direct labor. What is the amount of overhead allocated to job 5-25?

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Accounting Basics: A manufacturing company allocates overhead at a fixed rate
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