If the overhead applied to a job is $800 and the overhead recovery rate is $20 per direct labour hour, how many direct labour hours were used for the job?
A)900 hours.
B)25 hours.
C)30 hours.
D)40 hours.

Question

Quizplus · Accepted Answer

Overhead applied to the job = Overhead recovery rate x Direct labour hours used
$800 = $20/Direct labour hours used

Solving for Direct labour hours used,

Direct labour hours used = $800 / $20 per direct labour hour 
Direct labour hours used = 40 hours.

Therefore, the answer is D.

If the Overhead Applied to a Job Is $800 and the Overhead