Using the following accounts and a predetermined 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 a predetermined 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
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Using the Following Accounts and a Predetermined Overhead Rate of 90