Using the following accounts and an overhead rate of 90% of direct labor cost,determine the amount of applied overhead.

A) $79,200
B) $167,200
C) $34,320
D) $88,000
E) $35,376

Question

Using the following accounts and an overhead rate of 90% of direct labor cost,determine the amount of applied overhead.

A) $79,200 
B) $167,200 
C) $34,320 
D) $88,000 
E) $35,376

Quizplus · Accepted Answer

$17,600 + 52,800 + DL + OH - $201,520 = $36,080
DL + OH = $167,200
DL + .9DL = $167,200
1.9DL = $167,200
DL = $88,000
$88,000 + OH = $167,200
OH = $79,200

Using the Following Accounts and an Overhead Rate of 90