Orange Corporation Manufactures Custom-Made Wallets Factory Overhead Is Applied Using a Plant-Wide Rate Based on Job

question 120

Multiple Choice

Orange Corporation manufactures custom-made wallets. The following data pertains to Job GH7: $\begin{array}{lr}\text { Direct materials placed into production } & \$ 5,000 \\\text { Direct labor hours worked } & 75 \text { hours } \\\text { Direct labor rate per hour } & \$ 35 \\\text { Machine hours worked } & 200 \text { hours }\end{array}$
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $100,000 for the year, and the direct labor hours were estimated to be 25,000. Job GH7 consists of 60 units.
What is overhead cost assigned to Job GH7?

• A)$240
• B)$400
• C)$210
• D)$160

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The Woman's Christian Temperance Union, an organization that was instrumental in the temperance movement, advocating for the prohibition of alcohol.

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