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Question - At the beginning of the current year CR Company estimated the following costs
Direct material $4,000
Direct labour 20,000
Rent on factory building 15,000
Sales salaries 25,000
Depreciation on factory equipment 8,000
Indirect labour 10,000
Production supervisor's salary 12,000
CR Company estimated 20,000 labour hours to be worked during the year. Actual labour hours worked were 22,000 hours.
If overhead is applied on the basis of direct labour hours, what will be the overhead applied for the year?
a. $55,000.
b. $49,500.
c. $103,400.
d. $75,900.
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