Leisure Life manufactures a variety of sporting equipment. The firm's predetermined overhead application rate was 150 per cent of direct labour cost. Job 101 included direct materials of $15 000 and direct labour of $6000.
The manufacturing overhead applied to Job 101 during the year was

Question

Quizplus · Accepted Answer

The manufacturing overhead applied is calculated as 150% of the direct labour cost. Therefore, for a direct labour cost of $6000, the overhead applied is 150% of $6000 = 1.5 * $6000 = $9000.

Leisure Life Manufactures a Variety of Sporting Equipment