ACCOUNTING BUAD5107-Wilkes Manufacturing adopted a job costing system.
Question # 00319390
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Updated on: 06/20/2016 07:56 AM Due on: 06/20/2016
Wilkes Manufacturing adopted a job costing system. For the current year, budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $100,000, respectively. In addition, budgeted variable and fixed factory overhead costs were $50,000 and $25,000, respectively. Actual costs and hours for the year were as follows:
| Direct labor hours | 21,000 |
| Direct labor costs | $110,000 |
| Machine hours | 35,000 |
For a particular job, 1,500 direct labor hours were used. Using direct labor hours as the cost driver, what amount of overhead should be applied to this job?
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Solution: ACCOUNTING BUAD5107-Wilkes Manufacturing adopted a job costing system.