At the beginning of the current year CR Company estimated the following costs:
CR Company estimated 20,000 labour hours to be worked during the year.Actual labour hours worked were 22,000 hours.If overhead is applied on the basis of direct labour hours,what will be the overhead applied for the year?
A) $55,000.
B) $49,500.
C) $103,400.
D) $75,900.Applied = 22,000 hrs.@ $2.25/hr = $49,500

Question

At the beginning of the current year CR Company estimated the following costs: 
CR Company estimated 20,000 labour hours to be worked during the year.Actual labour hours worked were 22,000 hours.If overhead is applied on the basis of direct labour hours,what will be the overhead applied for the year?
A) $55,000. 
B) $49,500. 
C) $103,400. 
D) $75,900.Applied = 22,000 hrs.@ $2.25/hr = $49,500

Quizplus · Accepted Answer

Overhead is applied on the basis of direct labour hours. The overhead has been applied at a rate of $2.25 per labour hour. As the actual labour hours worked were 22,000, the overhead applied would be:

= Actual labour hours worked x Overhead rate per labour hour
= 22,000 hrs x $2.25/hr
= $49,500

Therefore, the correct answer is B) $49,500.

At the Beginning of the Current Year CR Company Estimated