The Owens Company Uses the Direct Labor Hour Method of Applying

question 68

Multiple Choice

The Owens Company uses the direct labor hour method of applying factory overhead to production. The budgeted factory overhead last year was $200,000, and there were 40,000 machine hours and 50,000 direct labor hours budgeted. Job 84 was started and completed during the period. Direct materials costing $900 were incurred. Twenty-five direct labor hours were worked at a cost of $350, and 40 machine hours were incurred. What is the amount of factory overhead applied to Job 84?

• A)$200
• B)$100
• C)$160
• D)$125

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Definitions:

Primary Cell

A voltaic cell that cannot be recharged.

Secondary Cell

A voltaic cell that can be recharged.

Cathode

An electrode through which electrons move outward from the source in an electrical device; in a battery, it's the negative electrode.

Voltaic

Pertaining to electricity or electrical phenomena, especially those produced chemically, e.g., in voltaic cells where chemical energy is converted into electrical energy.