Question

A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $24,000?

Answer 1

$29,760

Step-by-step explanation:

Overhead application rate = 124% of direct labor cost

The required total labor costing = $24,000

Total overhead applied = Overhead application rate * $24,000

Total overhead applied = 124% * $24000

Total overhead applied = $29,760