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The BeautyWorks Corporation Manufactures Custom-Made Purses Factory Overhead Is Applied Using a Plantwide Rate That Is

Question 23

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The BeautyWorks Corporation manufactures custom-made purses.The following data pertains to Job AAA:  Direct materials placed into production $4,000 Direct labour hours worked 60 hours  Direct labour rate per hour $15 Machine hours worked 100 hours \begin{array}{ll}\text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 60 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array} Factory overhead is applied using a plantwide rate that is based on direct labour hours.Factory overhead was budgeted at $120,000 for the year,and the direct labour hours were estimated to be 30,000.Job AAA consists of 50 units.What is the overhead cost assigned to Job AAA?


A) $240
B) $400
C) $750
D) $1,500

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