During the Month of August, Ross MotorCo Applied Overhead to Jobs

question 128

Multiple Choice

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor. Direct labor in August was $138,000. Estimated overhead in August was $112,800. Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 24,900 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 118,000\end{array}$$ How much will be recorded as a debit to Work in Process for overhead during the year for Ross MotorCo?

• A) $112,800
• B) $118,000
• C) $110,400
• D) More information is needed to answer

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