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 × 0.65 = $14,654.25

Question

Quizplus · Accepted Answer

The correct calculation for overhead applied to job #123 would be $22,545 x 0.65 = $14,654.25, not $15,000. Therefore, the statement in the question is false.

Metalworks Applies Manufacturing Overhead on the Basis of Direct Materials