At the Beginning of the Current Year CR Company Estimated

question 8

Multiple Choice

At the beginning of the current year CR Company estimated the following costs:
$\begin{array} { l r } \text { Direct materials } & \$ 4,000 \\\text { Direct labour } & \$ 20,000 \\\text { Rent on factory building } & \$ 15,000 \\\text { Sales salaries } & \$ 25,000 \\\text { Depreciation on factory equipment } & \$ 8,000 \\\text { Indirect labour } & \$ 10,000 \\\text { Production supervisor's salary } & \$ 12,000\end{array}$
CR Company estimated 20,000 labour hours to be worked during the year.Actual labour hours worked were 22,000 hours.If overhead is applied on the basis of direct labour hours,what will be the overhead applied for the year?

• A) $55,000.
• B) $49,500.
• C) $103,400.
• D) $75,900.

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