Benjamin Products Uses Job Order Costing and Assigns Overhead to Specific

question 10

Multiple Choice

Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labour hours.During the month of June,a total of 1800 direct labour hours at a cost of $14 per hour were incurred for all jobs.Actual overhead costs for the month totalled $4500.If a specific job required 32 direct labour hours of work,how much overhead should be applied to that job?

• A) $179.20
• B) $ 12.80
• C) $ 80.00
• D) $448.00

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Definitions:

Plant, Property

Long-term tangible assets owned by a business, used in operating activities, and not expected to be consumed or converted into cash short term.

Equipment

Tangible assets used in the operation of a business that have a useful life beyond a single accounting period.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories for more detailed and informative reporting.

Store Equipment

Fixed assets owned by a retail business, used in the operation and display of merchandise.