Vest Manufacturing Company applies overhead cost based on 120% of direct labor cost.In completing the 250 units in job #220, the company incurred $22,000 in direct materials and direct labor of $17,000.How much overhead should be applied to job #220?

Question

Quizplus · Accepted Answer

To determine the overhead cost to be applied to Job #220, we need to first calculate the total amount of direct labor cost incurred, which is $17,000.

Then, we need to apply the overhead rate, which is 120% of the direct labor cost.

120% of $17,000 = $20,400

Therefore, the overhead cost to be applied to Job #220 is $20,400.

The correct answer is choice C.

Vest Manufacturing Company Applies Overhead Cost Based on 120% of Direct