Applying Factory Overhead Darling Company estimates that total factory overhead costs will be $180,000 for the...
Applying Factory Overhead
Darling Company estimates that total factory overhead costs will be $180,000 for the year. Direct labor hours are estimated to be 20,000.
a. During May, Darling Company accumulated 900 hours of direct labor costs on Job 200 and 830 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. If required, round your answer to two decimal places.
Homework Answers
Answer- The amount of factory overhead applied- Job 200= $9 per labor hour*900 hours = $8100.
Job 305 = $9 per labor hour*830 hours = $7470.
Explanation- Predetermined overhead rate for factory overhead = Total factory overhead/ Budgeted direct labor hours
= $180000/20000 hours
= $9 per hour
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