Reynolds Manufacturers Inc.has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year.If job number 117 incurs 2,300 direct labor hours,Work in Process will be debited and Factory Overhead will be credited for

Question

Quizplus · Accepted Answer

To determine the amount of factory overhead that will be charged to Job 117, we need to first calculate the predetermined overhead rate using the following formula:

Predetermined overhead rate = Estimated total factory overhead costs / Estimated direct labor hours
Predetermined overhead rate = $95,000 / 9,500
Predetermined overhead rate = $10 per direct labor hour

Next, we can calculate the amount of factory overhead charged to Job 117 using the following formula:

Factory overhead charged to Job 117 = Predetermined overhead rate x Actual direct labor hours incurred on Job 117
Factory overhead charged to Job 117 = $10 x 2,300 
Factory overhead charged to Job 117 = $23,000

Therefore, the answer is D, $23,000.