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Lelechka [254]
3 years ago
15

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,

850 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,790 and direct labor cost of $770. Therefore, the amount of the applied overhead is: Multiple Choice $2,060. $2,560. $1,290. $770. $3,080.
Business
1 answer:
QveST [7]3 years ago
4 0

Answer:

$1,290

Explanation:

The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.

If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:

O = \$3,850 - \$1,790 - \$770\\O=\$1,290

The amount of the applied overhead is $1,290.

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