What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)
Determining actual factory
The books of Prestige Products Company revealed that the
following general
Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Under- and Overapplied Factory Overhead ...................... 2,000
Closed credit balance in factory overhead control account.
The total direct materials cost for the period was $40,000.
The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)
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