Following are the budgeted costs for a manufacturing plant producing custom products: Materials (70% direct and 30% indirect)$15,000
Labour (60% direct and 40% indirect)12,000
Supervision 5,000
Amortization 10,000
Utilities 4,860
Total $46,860
The company uses a normal costing system and overhead is allocated on the basis of direct labour cost. If actual direct labour cost was $7,500, the overhead allocated was:

Question

Quizplus · Accepted Answer

The Answer of Following are the budgeted costs for a manufacturing plant producing custom products: Materials (70% direct and 30% indirect)$15,000
Labour (60% direct and 40% indirect)12,000
Supervision 5,000
Amortization 10,000
Utilities 4,860
Total $46,860
The company uses a normal costing system and overhead is allocated on the basis of direct labour cost. If actual direct labour cost was $7,500, the overhead allocated was:

Following Are the Budgeted Costs for a Manufacturing Plant Producing