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