ACC 212 Exam 1 Study Guide
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A company has an overhead application rate of 123% of direct labor costs. How much overhead would be allocated to a job if it required direct labor costing $16,000? A. $13,008 B. $196,800 C. $19,680 D. $9,840 E. $16,000
C. $19,680 $16,000 x 123% (1.23)
Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $28,000; direct materials, $48,000; and factory overhead applied $5,800. The predetermined overhead rate was: A. 4.83% B. 12.08% C. 20.71% D. 482.76% E. 17.14%
C. 20.71% $5,800/$28,000= 20.71%
