Jasper Corporation reports the following cost information for March:
-What is the amount of manufacturing overhead incurred by the company in March?
A)$13,430
B)$20,000
C)$30,270
D)$136,570

Question

Jasper Corporation reports the following cost information for March:  
-What is the amount of manufacturing overhead incurred by the company in March?
A)$13,430 
B)$20,000 
C)$30,270 
D)$136,570

Quizplus · Accepted Answer

Manufacturing overhead is applied at a rate of 150% of direct labor cost. Direct labor cost in March is $8,950. Therefore, manufacturing overhead incurred in March is $8,950 x 150% = $13,430.

Jasper Corporation Reports the Following Cost Information for March