Cooper Manufacturing is currently working on two jobs.The job order cost sheets for Job 101 and Job 102 showed the following information: $$\begin{array} { l r r }
& \text { Job } 101 & \text { Job } 102 \
\text { Direct Materials } & \$ 1 2 , 0 0 0 & \$ 15,000 \
\text { Direct labor } & 2 4 , 0 0 0 & 45,000
\end{array}$$ If overhead is applied to jobs at $0.80 per direct labor dollar,the overhead applied to the two jobs would be:
A) $96,000.
B) $55,200.
C) $151,200.
D) $162,000.

Question

Cooper Manufacturing is currently working on two jobs.The job order cost sheets for Job 101 and Job 102 showed the following information: $$\begin{array} { l r r } 
& \text { Job } 101 & \text { Job } 102 \
\text { Direct Materials } &  \$ 1 2 , 0 0 0  &  \$  15,000 \
\text { Direct labor } &  2 4 , 0 0 0  & 45,000
\end{array}$$ If overhead is applied to jobs at $0.80 per direct labor dollar,the overhead applied to the two jobs would be:
A) $96,000.
B) $55,200.
C) $151,200.
D) $162,000.

Quizplus · Accepted Answer

To apply overhead at $0.80 per direct labor dollar, we need to determine the total direct labor cost for both jobs. 
For Job 101: Direct labor cost = $80,000 
For Job 102: Direct labor cost = $60,000 
Total direct labor cost = $80,000 + $60,000 = $140,000 
Overhead applied = $0.80 x $140,000 = $112,000 
Therefore, the overhead applied to the two jobs would be $112,000 or option B.

Cooper Manufacturing Is Currently Working on Two Jobs If Overhead Is Applied to Jobs at $0