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Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for $2,300 $21,850 $23,000 $95,000

Respuesta :

hyderali230

Answer:

$23,000

Explanation:

Overhead application rate is the rate at which manufacturing overheads are applied to a product / project / department. It  is calculated by dividing the Budgeted overhead by the budgeted level of activity on which the overhead is applied.

Overhead application rate = Budgeted overhead / Budgeted activity

Overhead application rate = Budgeted overhead / Budgeted labor hours

Overhead application rate = $95,000 / 9500 direct labor hours

Overhead application rate = $10 per direct labor hour

Assigned Overhead =  Overhead application rate x Actual Number of machine hours consumed = $10 x 2300 = $23,000

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