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marissa [1.9K]
3 years ago
9

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

200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:
Business
1 answer:
jarptica [38.1K]3 years ago
7 0

Answer:

$1,000

Explanation:

The work in process inventory account of a manufacturing company uses an overhead rate

The direct labour cost has a debit balance of $3,200

Direct material cost is $1,400

Direct labor cost is $800

Therefore the amount of the applied overhead can be calculated as follows

= $1,400 + $800

= $2,200

= $3,200-$2,200

= $1,000

Hence the applied overhead is $1,000

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