The Milo Company's records for May contained the following information. Actual direct labor-hours Actual direct labor cost Direct material purchased Direct material used Cost of goods sold Underapplied overhead Ending inventories: Raw materials Work-in-process Finished goods 9,000 hours $ 47,000 16,000 14,000 100,000 5,000 $8,500 10,000 60,000 The company uses a predetermined overhead rate of $5.00 per direct labor hour to apply manufacturing overhead to jobs. What is the actual overhead cost incurred during the month? a. $40,000 b. $45,000 c. $50,000 d. $55,000

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 3SEA: JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Hilburn Manufacturing Corporation had the...
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The Milo Company's records for May contained the following information.
Actual direct labor-hours
Actual direct labor cost
Direct material purchased
Direct material used
Cost of goods sold
Underapplied overhead
Ending inventories:
Raw materials
Work-in-process
Finished goods
9,000 hours
$ 47,000
16,000
14,000
100,000
5,000
$8,500
10,000
60,000
The company uses a predetermined overhead rate of $5.00 per direct labor hour to apply
manufacturing overhead to jobs. What is the actual overhead cost incurred during the month?
a. $40,000
b. $45,000
c. $50,000
d. $55,000
Transcribed Image Text:The Milo Company's records for May contained the following information. Actual direct labor-hours Actual direct labor cost Direct material purchased Direct material used Cost of goods sold Underapplied overhead Ending inventories: Raw materials Work-in-process Finished goods 9,000 hours $ 47,000 16,000 14,000 100,000 5,000 $8,500 10,000 60,000 The company uses a predetermined overhead rate of $5.00 per direct labor hour to apply manufacturing overhead to jobs. What is the actual overhead cost incurred during the month? a. $40,000 b. $45,000 c. $50,000 d. $55,000
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