Warren Company applies overhead based on direct labor cost. Warren Company estimated that it would incur $97,000 in manufacturing overhead costs and $63,500 of direct labor costs during the current year. Actual manufacturing overhead cost totaled $82,000 and actual direct labor costs totaled $62,000 during the current year. If total manufacturing costs were $167,000, what amount of direct materials was used during the year? Multiple Choice $11,500 $23,000 $8,000 None of these answers are correct.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Warren Company applies overhead based on direct labor cost. Warren Company estimated that it would incur $97,000 in manufacturing overhead costs and $63,500 of direct labor costs during the current year. Actual manufacturing overhead cost totaled $82,000 and actual direct labor costs totaled $62,000 during the current year. If total manufacturing costs were $167,000, what amount of direct materials was used during the year?

**Multiple Choice:**

- O $11,500
- O $23,000
- O $8,000
- O None of these answers are correct.
Transcribed Image Text:Warren Company applies overhead based on direct labor cost. Warren Company estimated that it would incur $97,000 in manufacturing overhead costs and $63,500 of direct labor costs during the current year. Actual manufacturing overhead cost totaled $82,000 and actual direct labor costs totaled $62,000 during the current year. If total manufacturing costs were $167,000, what amount of direct materials was used during the year? **Multiple Choice:** - O $11,500 - O $23,000 - O $8,000 - O None of these answers are correct.
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