Using the following accounts and an overhead rate of 80% of direct labor cost,determine the amount of applied overhead.

A) $135,000
B) $75,000
C) $60,000
D) $101,000
E) $17,000

Question

Using the following accounts and an overhead rate of 80% of direct labor cost,determine the amount of applied overhead.

A) $135,000 
B) $75,000 
C) $60,000 
D) $101,000 
E) $17,000

Quizplus · Accepted Answer

$53,000 + 48,000 + DL + OH - 200,000 = $36,000
DL + OH = $135,000
DL + .8DL = $135,000
1.8DL = $135,000
DL = 75,000
$75,000 + OH = $135,000
OH = $60,000

Using the Following Accounts and an Overhead Rate of 80