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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

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918821

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