Asked by Kevin Vadakkel on Jul 03, 2024
Verified
Leisure Life manufactures a variety of sporting equipment. The firm's predetermined overhead application rate was 150 per cent of direct labour cost. Job 101 included direct materials of $15 000 and direct labour of $6000.
The manufacturing overhead applied to Job 101 during the year was
A) $4000.
B) $6000.
C) $8000.
D) $9000.
Predetermined Overhead
An estimated overhead cost rate used to allocate overhead costs to products or services based on a planned activity level.
Direct Labour Cost
This refers to the total earnings (wages, salaries, benefits) paid to employees directly involved in the production of goods or services.
Sporting Equipment
Items and gear used in sports and physical activities to enhance performance or ensure safety.
- Identify how manufacturing overhead applied is calculated and its impact on job costing.
Verified Answer
Learning Objectives
- Identify how manufacturing overhead applied is calculated and its impact on job costing.
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