Watson inc applies overhead cost based on direct labor


Question - Watson, Inc. applies overhead cost based on direct labor hours. In completing the 200 units in job #120, the company incurred $12,000 in direct materials and 500 direct labor hours at $18 per hour. The predetermined overhead rate is $6 per direct labor hour. What is the total cost of the units in job #120?

a. $21,000

b. $18,600

c. $22,200

d. $24,000

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Accounting Basics: Watson inc applies overhead cost based on direct labor
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