For jacobs company, the predetermined overhead rate is 70% of direct labor cost. during the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor. actual overhead incurred was $320,000. the amount of overhead debited to work in process inventory should be:

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Business

Lamar Griffith

6 May, 04:11

For jacobs company, the predetermined overhead rate is 70% of direct labor cost. during the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor. actual overhead incurred was $320,000. the amount of overhead debited to work in process inventory should be:

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Gage · Answer 1

First find the amount of direct labor cost by subtracting the amount of indirect labor cost from the amount of factory labor cost

Direct labor cost is

600,000-140,000=460,000

The amount of overhead debited to work in process inventory should be

460,000*0.7=322,000

Answer 322000