In 2018 Valentino Coffee Supplies Planned the Following The Predetermined Overhead Rate Is Based on Direct Labour Hours

question 60

Multiple Choice

In 2018 Valentino Coffee Supplies planned the following:
$$\begin{array} { l r } \text { Factory overhead costs } & \$ 120000 \\\text { Direct labour costs (12 } 000 \text { hours at } \$ 8.00 \text { per hour) } & \$ 96000 \\\text { Machine Hours } & 45000 \\\text { Direct material costs } & \$ 85000\end{array}$$
The predetermined overhead rate is based on direct labour hours and planned production during 2018 is 20 000 units. By the end of 2018, a total of 18 000 units had been produced and 11 000 direct labour hours used. How much overhead was applied to work in process?

• A) $85 000
• B) $88 000
• C) $110 000
• D) $120 000

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