Olive Productions utilizes job-order costing for textbook production. It allocates overhead at a rate of 130% of direct labor costs. The following is data regarding three jobs: $\begin{array}{llll}
&\text { WIP balance }&\text { Costs added in February }\
&\text { OnFeb.1}&\text { Direct Labor}&\text {Direct Materials }\
\text { Job } \# 64 & \$ 600 & \$ 500 & \$ 200 \
\text { Jab } \# 65 & \$ 700 & \$ 300 & \$ 300 \
\text { Job } \# 66 & \$ 500 & \$ 100 & \$ 250
\end{array}$ How much are total manufacturing overhead costs applied for February?

Question

Quizplus · Accepted Answer

The total manufacturing overhead costs applied for February are calculated by multiplying the direct labor costs by the overhead rate (130%). For Job #64: $500 * 130% = $650, for Job #65: $300 * 130% = $390, and for Job #66: $100 * 130% = $130. Adding these gives $650 + $390 + $130 = $1,170.

Olive Productions Utilizes Job-Order Costing for Textbook Production How Much Are Total Manufacturing Overhead Costs Applied for February