At the beginning of the year, Wilson Company estimated the following:
Wilson used normal costing and applies overhead on the basis of direct labor hours.For the month of September, direct labor hours equaled 9,350 and actual overhead equaled $46,750.
Calculate the overhead applied to production in September.
A) $56,100
B) $30,000
C) $46,750
D) $5 per direct labor hour
E) None of these.

Question

At the beginning of the year, Wilson Company estimated the following: 
 Wilson used normal costing and applies overhead on the basis of direct labor hours.For the month of September, direct labor hours equaled 9,350 and actual overhead equaled $46,750.
Calculate the overhead applied to production in September.
A) $56,100 
B) $30,000 
C) $46,750 
D) $5 per direct labor hour 
E) None of these.

Quizplus · Accepted Answer

Predetermined overhead rate = $360,000 / 60,000 = $6 per direct labor hour
 
Applied overhead = $6 × 9,350 = $56,100

At the Beginning of the Year, Wilson Company Estimated the Following