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Warren Company Applies Overhead Based on Direct Labor Cost

Question 61

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Warren Company applies overhead based on direct labor cost.Warren Company estimated that it would incur $180,000 in manufacturing overhead costs and $120,000 of direct labor costs during the current year.Actual manufacturing overhead cost totaled $150,000 and actual direct labor costs totaled $110,000 during the current year.If total manufacturing costs were $320,000,what amount of direct materials was used during the year?


A) $60,000
B) $30,000
C) $45,000
D) None of these answers are correct.

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