Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

question 81

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 20% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,360 \\\hline \text { Direct labor cost } & \$ 20,000 \\\hline \text { Direct labor hours } & 34 \text { hours } \\\hline \text { Units of product produced } & 220 \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

• A)$27,632
• B)$24,000
• C)$10,360
• D)$30,360

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