Rolling Hills Construction
Rolling Hills Construction Co. assigns overhead to specific jobs based on direct labour cost (dollars). The following information is available for the month of June:
$$\begin{array} { l l }
\text { Estimated direct labour hours } & 2000 \text { hours } \
\text { Estimated direct labour cost per hour } & \$ 12 / \text { hour } \
\text { Estimated overhead costs } & \$ 3000 \
\text { Actual direct labour hours } & 2300 \text { hours } \
\text { Actual direct labour cost per hour } & \$ 13 \text { hour } \
\text { Actual overhead costs } & \$ 3300
\end{array}$$
-The amount of overhead applied for June is:

Question

Rolling Hills Construction
Rolling Hills Construction Co. assigns overhead to specific jobs based on direct labour cost (dollars). The following information is available for the month of June:
$$\begin{array} { l l } 
\text { Estimated direct labour hours } & 2000 \text { hours } \
\text { Estimated direct labour cost per hour } & \$ 12 / \text { hour } \
\text { Estimated overhead costs } & \$ 3000 \
\text { Actual direct labour hours } & 2300 \text { hours } \
\text { Actual direct labour cost per hour } & \$ 13 \text { hour } \
\text { Actual overhead costs } & \$ 3300
\end{array}$$
-The amount of overhead applied for June is:

Quizplus · Accepted Answer

To calculate the predetermined overhead rate, we add up the estimated overhead costs ($44,850) and divide by the estimated activity level (9,500 direct labor hours). This gives us a rate of $4.71 per direct labor hour. 
To apply overhead to a specific job, we multiply the actual direct labor hours used by the predetermined overhead rate. For Job #267, this would be: 
(800 direct labor hours) x ($4.71 per direct labor hour) = $3,768
Therefore, the amount of overhead applied for June is $3,768 or $3,737.50 rounded to the nearest cent. 
The options A, B, and D are incorrect as they do not match with the calculated value.

Rolling Hills Construction Rolling Hills Construction Co -The Amount of Overhead Applied for June Is: A) $3450

Rolling Hills Construction
Rolling Hills Construction Co -The Amount of Overhead Applied for June Is:
A) $3450