Reference no: EM132542808

The overhead is allocated to jobs using an estimated rate applied to direct labour hours.

The budget for the year called for $180,000 of overhead cost and 60,000 direct labour hours.

1. Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000.
2. September 1 finished goods inventory was $11,000.
3. Cost of jobs completed in September was $89,000.
4. On September 30 there was a single job unfinished, consisting of $1,800 (300 hours) of direct labour and $2,600 of direct material.
5. 5,200 direct hours were worked during September. All workers earn the same rate of pay.
6. All actual overhead costs incurred have been recorded.

Question 1 : Materials used during September were:

Option a. None of the above

Option b. $48,000

Option c. $43,000

Option d. 42000