Sleney Company applies overhead on the basis of direct labor dollars,using a rate of $1.65 per labor dollar.How much overhead would be applied to products in January if $18,600 of labor costs were incurred and 2,200 labor hours were worked?

Question

Quizplus · Accepted Answer

To calculate the overhead applied to products, we need to multiply the total labor cost by the overhead rate:

Overhead applied = Labor cost x Overhead rate
Overhead applied = $18,600 x $1.65
Overhead applied = $30,690

Therefore, the overhead applied to products in January is $30,690. The correct answer is B.

Sleney Company Applies Overhead on the Basis of Direct Labor