Following Are the Budgeted Costs for a Manufacturing Plant Producing

question 143

Multiple Choice

Following are the budgeted costs for a manufacturing plant producing custom products: Materials (70% direct and 30% indirect) $15,000
Labour (60% direct and 40% indirect) 12,000
Supervision 5,000
Amortization 10,000
Utilities 4,860
Total $46,860
The company uses a normal costing system and overhead is allocated on the basis of direct labour cost. If actual direct labour cost was $7,500, the overhead allocated was:

• A)$29,160
• B)$20,688
• C)$30,375
• D)$48,813

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