If the overhead applied to a job is $600 and the overhead recovery rate is $15 per direct labour hour, how many direct labour hours were used for the job?

Question

Quizplus · Accepted Answer

We can use the formula:

Overhead Applied = Overhead Recovery Rate x Direct Labour Hours

Substituting the given values:

$600 = $15 per DLH x DLH

DLH = $600 / $15 per DLH

DLH = 40 hours

Therefore, the best choice is C as it gives the correct answer.

If the Overhead Applied to a Job Is $600 and the Overhead