Maria's Custom Tailoring Is Very Labor Intensive

question 58

Multiple Choice

Maria's Custom Tailoring is very labor intensive. Therefore, Maria has decided to use direct labor hours as the cost driver for assigning overhead costs to specific jobs. During the month of February, the company incurred overhead costs of $4,800. Total direct labor hours during the month totaled 1,200. Out of a total of 45 different jobs worked on during the month, Job #115 required 16 direct labor hours to complete and Job #195 required 15 direct labor hours. The total amount of overhead allocated to these two jobs is:

• A) $124.00
• B) $187.50
• C) $137.50
• D) $ 31.00

---

Definitions:

Industrial Unions

Industrial unions are trade unions that represent all workers, skilled and unskilled, within a particular industry.

Blue-Collar

Refers to employees who perform manual labor or are engaged in trade and craft activities, often involving physical work.

Government Occupations

Jobs that are provided by and exist within the governmental sector, including local, state, and federal positions.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at establishing salaries, working conditions, and other terms of employment.