Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labour hours.During the month of June,a total of 1800 direct labour hours at a cost of $14 per hour were incurred for all jobs.Actual overhead costs for the month totalled $4500.If a specific job required 32 direct labour hours of work,how much overhead should be applied to that job?

Question

Quizplus · Accepted Answer

The overhead rate is calculated by dividing total actual overhead costs by total direct labour hours: $4500 / 1800 hours = $2.50 per hour. For a job requiring 32 hours, the overhead applied is 32 hours * $2.50/hour = $80.00.

Benjamin Products Uses Job Order Costing and Assigns Overhead to Specific