Kelson Company applies overhead to jobs on the basis of 60% of direct labor cost.If Job 201 shows $27,000 of manufacturing overhead applied,the direct labor cost on the job was:

Question

Quizplus · Accepted Answer

Manufacturing overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Actual direct labor cost
Actual direct labor cost = Manufacturing overhead applied F1F1F1S1F1F1F10 Predetermined overhead rate
= $27,000 F1F1F1S1F1F1F10 0.60
= $45,000

Kelson Company Applies Overhead to Jobs on the Basis of 60