Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
The accounting records show the Mossman Job consumed the following resources:

-Using direct labor-hours as the only overhead cost driver, what is the amount of overhead costs allocated to the Mossman Job?
A)$160
B)$120
C)$240
D)$125

Question

Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
  The accounting records show the Mossman Job consumed the following resources:
 
-Using direct labor-hours as the only overhead cost driver, what is the amount of overhead costs allocated to the Mossman Job?
A)$160 
B)$120 
C)$240 
D)$125

Quizplus · Accepted Answer

The Mossman Job used 20 direct labor-hours, and the overhead rate is $8 per direct labor-hour. Therefore, the amount of overhead costs allocated to the Mossman Job is $160 (20 hours x $8 per hour).

Answer the Following Questions Using the Information Below