The following information is provided for the year:
$\begin{array}{llr}
\text { Actual direct labour hours worked } &27,500\
\text {Budgeted overhead } &\$525,000\
\text {Budgeted direct labour hours } &30,000\
\text {Actual overhead costs incurred } &\$481,250
\end{array}$
If normal costing is used,what is the amount of overhead applied for the year?
A)$441,031.25
B)$481,250.00
C)$525,000.00
D)$568,750.00

Question

The following information is provided for the year: 
$\begin{array}{llr}
  \text { Actual direct labour hours worked } &27,500\
 \text {Budgeted overhead  } &\$525,000\
 \text {Budgeted direct labour hours  } &30,000\
 \text {Actual overhead costs incurred  } &\$481,250
\end{array}$
 If normal costing is used,what is the amount of overhead applied for the year?
A)$441,031.25
B)$481,250.00
C)$525,000.00
D)$568,750.00

Quizplus · Accepted Answer

There is not enough information given to calculate the overhead applied using normal costing, as we need to know the predetermined overhead rate and the actual amount of the allocation base used during the year. Therefore, the correct answer cannot be determined.

The Following Information Is Provided for the Year If Normal Costing Is Used,what Is the Amount of Overhead