Q1) The account balances for Dilone Company for the month of November are given below:
| |
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 |
Overhead rate is 25 percent of raw materials utilized plus 50 percent of direct labor costs. How much overhead was incurred for month?
a. $23,500
b. $23,800
c. $25,000
d. $12,200