Klt Company had the following information for the year Direct materials used Dir

Question

Klt Company had the following information for the year Direct materials used Direct labor Incurred (5,400 hours) Actual manufacturing overhead Incurred $115,700 $159,500 $171,800 Kilt Company used a predetermined overhead rate of $32 per direct labor hour for the yeer and estimated that direct labor hours would total 5,400 hours. Assume the ony Inventory balance is an ending Work in Process baiance of $17700. How much overhead was applied during the year? O $171,800 O $115700 D $172.800 O $159.500

Explanation / Answer

Overhead = Direct Labor hour rate* No of Direct labour hours used

The ovehead was used during the year = $32*5400 = $172800

Option C is Correct

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