Galbraith Corporation 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: a. $40,000. b. $19,600. c. $28,000. d. $36,400.

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...
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Galbraith Corporation 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:
a. $40,000.
b. $19,600.
c. $28,000.
d. $36,400.
Transcribed Image Text:Galbraith Corporation 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: a. $40,000. b. $19,600. c. $28,000. d. $36,400.
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