Kilt Company had the following information for the year: Direct materials used= $110,000 Direct labor incurred (5,000 hours) = $150,000 Actual manufacturing overhead incurred= $166,000 Kilt Company used a predetermined overhead rate of $42 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000.
Kilt Company had the following information for the year: Direct materials used= $110,000 Direct labor incurred (5,000 hours) = $150,000 Actual manufacturing overhead incurred= $166,000 Kilt Company used a predetermined overhead rate of $42 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Kilt Company had the following information for the year:
Direct materials used= $110,000
Direct labor incurred (5,000 hours) = $150,000
Actual manufacturing overhead incurred= $166,000
Kilt Company used a predetermined overhead rate of $42 per direct labor
hour for the year and estimated that direct labor hours would total 5,500
hours. Assume the only inventory balance is an ending Work in Process
balance of $17,000.
How much overhead was applied during the year?
A. $231,000
B. $150,000
C. $166,000
D $210.000
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