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Calculation of overheads for the month.
The following are the account balances for the Dilone Company for the month of November:
November 1
November 30
Molding
Assembly
Manufacturing overhead cost
$1,200,000
$800,000
Machine hours
10,000
4,000
Direct labor hours
12,000
16,000
Raw materials inventory
$400
$500
Work in process
1,900
7,500
Finished goods inventory
15,000
5,000
Materials used
$44,000
Direct labor
25,000
Overhead under applied variance
300
The overhead rate is 25 percent of raw materials used plus 50 percent of direct labor costs.How much overhead was incurred for the month?
a. $23,500 b. $23,800 c. $25,000 d. $12,200
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