Birk applies overhead to jobs at a predetermined rate of 80% of direct Labour cost. Job No. 5, the only job still in process on April 30, has been charged with direct Labour of £2,000. What was the amount of direct materials charged to Job No. 5
A)£3,000
B)£5,200
C)£8,800
D)£24,000

Question

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The Answer of Birk applies overhead to jobs at a predetermined rate of 80% of direct Labour cost. Job No. 5, the only job still in process on April 30, has been charged with direct Labour of £2,000. What was the amount of direct materials charged to Job No. 5
A)£3,000
B)£5,200
C)£8,800
D)£24,000

Birk Applies Overhead to Jobs at a Predetermined Rate of 80