The Davis Corporation Uses the Direct Labor Hour Method of Applying

Multiple Choice

The Davis Corporation uses the direct labor hour method of applying factory overhead to production.The budgeted factory overhead last year was $300,000,and there were 50,000 machine hours and 40,000 direct labor hours budgeted.Job 564 was started and completed during the period.Direct materials costing $5,400 were incurred.Thirty-six direct labor hours were worked at a cost of $500,and 50 machine hours were incurred.What is the amount of factory overhead applied to Job 564?

A) $375
B) $270
C) $216
D) $300