Metalworks applies manufacturing overhead on the basis of direct materials used in production. During the current period, direct materials used for job #123 amounted to $22,545. If Metalworks' overhead rate is 0.65 of direct materials used, the overhead applied to job #123 for the period was $15,000.
Correct answer would have been $22,545 x 0.65 = $14,654.25

Question

Quizplus · Accepted Answer

The calculation should have been $22,545 x 0.65 = $14,654.25, not $15,000. So, the answer given in the question is incorrect.

Metalworks Applies Manufacturing Overhead on the Basis of Direct Materials