Adams Manufacturing Allocates Overhead to Production on the Basis of Direct

question 9

Multiple Choice

Adams Manufacturing allocates overhead to production on the basis of direct labor costs.At the beginning of the year,Adams estimated total overhead of $396,000;materials of $410,000 and direct labor of $220,000.During the year Adams incurred $418,000 in materials costs,$413,200 in overhead costs and $224,000 in direct labor costs.Compute the amount of overhead applied to jobs during the year.

• A)$396,000.
• B)$424,450.
• C)$413,190.
• D)$413,200.
• E)$403,200.

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