For Jacobs Company the predetermined overhead rate is 70% of direct labor cost. During the month $600000 of factory labor costs are incurred of which $140000 is indirect labor. Actual overhead incurred was $320000. The amount of overhead debited to Work in Process Inventory should be:

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The predetermined overhead rate is 70% of direct labor cost. So, the overhead applied to Work in Process Inventory is 70% of $600,000 - $140,000 = $322,000.

For Jacobs Company the Predetermined Overhead Rate Is 70% of Direct