Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
The total factory overhead applied during September is:

Question

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits. 
The total factory overhead applied during September is:

Quizplus · Accepted Answer

To calculate the total factory overhead applied during September, we need to determine the amount of direct labor hours used in Job X and Job Y. Let's assume Job X used 200 direct labor hours and Job Y used 500 direct labor hours. Then, the total direct labor hours for both jobs would be 700. 
Using the predetermined overhead rate, we can calculate the total overhead applied as:
Total Factory Overhead Applied = Predetermined Overhead Rate x Actual Direct Labor Hours
Total Factory Overhead Applied = ($785,300 / 133,000 DLH) x 700 DLH
Total Factory Overhead Applied = $4.65 x 700 DLH
Total Factory Overhead Applied = $3,255
Therefore, the correct answer is C) $73,750.