Question

Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What was the amount of manufacturing overhead applied to Job A-101

Answer 1

Answer: $18000

Explanation:

Here's the complete question:

Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Estimated manufacturing overhead for the year$30,000 Estimated direct labor hours for the year 2,000 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What was the amount of manufacturing overhead applied to Job A-101?

The overhead rate will be:

$30,000 ÷ 2,000

= $15

Then, the amount of manufacturing overhead that is being applied to Job A-101 would be:

= $1,200 × $15

= $18,000