A manufacturing company allocates overhead at a fixed rate of $20 per hour based on direct labor hours. During the month, total overhead incurred was $150,000, and the total direct labor hours worked was 4,000.
Question
A manufacturing company allocates overhead at a fixed rate of $20 per hour based on direct labor hours. During the
month, total overhead incurred was $150,000, and the total direct labor hours worked was 4,000. Job number 5-50 had 600 hours of direct labor. What is the amount of overhead allocated to job 5-50?
Question 8 options:
$80,000
$75,000
$12,000
$18,000