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Davis Company Davis Company Uses a Job-Order Costing System.Assume That Job #504

Question 142

Multiple Choice

Davis Company
Davis Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available:

 Budgeted direct labor hours   65,000  Budgeted machine hours   9,000
 Budgeted overhead  $350,000  Direct material  $110,500
Direct labor cost    $70,000    

Refer to Davis Company.What is the overhead application rate if Davis uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar) ?


A) $ 0.20
B) $ 5.00
C) $ 5.38
D) $38.89

Correct Answer:

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