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The accounting records of Omar Corporation contained the following information for last ...

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The accounting records of Omar Corporation contained the following information for last ...

The accounting records of Omar Corporation contained the following information for last year:

	Beginning	Ending
Direct materials inventory	$ 9,000	$ 7,000
Work in process inventory	$17,000	$31,000
Finished goods inventory	$10,000	$15,000

	Manufacturing Costs Incurred
Direct materials used	$ 72,000
Overhead applied	$ 24,000
Direct labor cost (10,000 hours)	$ 80,000
Depreciation	$ 10,000
Rent	$ 12,000
Taxes	$ 8,000
Unadjusted cost of goods sold (does not include overapplied or underapplied overhead)	$157,000

	Selling, General, and Administrative Costs Incurred
Advertising	$ 35,000
Rent	$ 20,000
Clerical	$ 25,000

If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120 hours, how much overhead should be applied to that job?

▸ $960

▸ $360

▸ $528

▸ $288

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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