During the Month of August, Ranson Productions Applied Overhead to Jobs

question 110

Multiple Choice

During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor.Actual direct labor in August was 12,000 hours at $15.00 per hour, for a total of $180,000.Estimated overhead in August was $111,600.Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 22,000 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 115,100\end{array}$$ How much overhead was applied during the year by Ranson Productions?

• A)$108,000
• B)$115,100
• C)$111,600
• D)More information is needed to answer