What is the overhead cost assigned to job

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The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:

Direct Materials placed into production, $4,000
Direct Labor Hours worked, 50 hours
Direct Labor rate per hour, $15
Machine hours worked, 100 hours

Plantwide overhead is applied using a plant-wide rate based on direct labor hours. Plantwide overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000. Job XY5 consists of 50 units.

Problem 1: What is the overhead cost assigned to Job XY5?

Option 1: $1,500
Option 2: $400
Option 3: $200
Option 4: $750

Reference no: EM132950454

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