Question

The following budget data are available for Sharp Company: 

Estimated direct labor hours 12,000 

Estimated direct labor dollars $90,000 

Estimated factory overhead costs $180,000 

Actual direct labor hours 11,500 

Actual direct labor dollars $92,000 

Actual factory overhead costs $181,000 

If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is 

Formula: Est. OH/Est. DLH-POH Rate; POH Rate x Actual DLH = OH Applied 

a. $181,000 

b. $184,000 

c. $180,000 

d. $172,500

Answer 1

The Answer is d. $ 172,500