Galbraith Company applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on the job was:

Name: Galbraith Company applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on the job was:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the direct labor cost, divide the applied overhead by the overhead rate: $28,000 / 0.70 = $40,000.

Galbraith Company Applies Overhead Cost to Jobs on the Basis