What amount of overhead should be applied to the job

Reference no: EM132086262

Question: Wilkes Manufacturing adopted a job costing system. For the current year, budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $100,000, respectively. In addition, budgeted variable and fixed factory overhead costs were $50,000 and $25,000, respectively. Actual costs and hours for the year were as follows:

Direct labor hours 21,000

Direct labor costs $110,000

Machine hours 35,000

For a particular job, 1,500 direct labor hours were used. Using direct labor hours as the cost driver, what amount of overhead should be applied to this job?

Reference no: EM132086262

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