Harnack Company had the following information:
Budgeted cost driver activity levels:
Actual cost driver activity levels:

-If Job 200 used $8,736 of direct labour cost, the overhead applied using direct-labour cost as the cost driver should be

Question

Harnack Company had the following information:
  Budgeted cost driver activity levels:
  Actual cost driver activity levels:
 
-If Job 200 used $8,736 of direct labour cost, the overhead applied using direct-labour cost as the cost driver should be

Quizplus · Accepted Answer

The overhead applied is typically calculated by multiplying the direct labor cost by the overhead rate. In this case, the overhead rate is 3 times the direct labor cost ($8,736 x 3 = $26,208).

Harnack Company Had the Following Information