The following are the account balances for the Dilone Company for the month of November:
|
November 1
|
November 30
|
|
|
Molding
|
Assembly
|
|
| Manufacturing overhead cost |
$1,200,000
|
$800,000
|
| Machine hours |
10,000
|
4,000
|
| Direct labor hours |
12,000
|
16,000
|
| Raw materials inventory |
$400
|
$500
|
| Work in process |
1,900
|
7,500
|
| Finished goods inventory |
15,000
|
5,000
|
| Materials used |
|
$44,000
|
| Direct labor |
|
25,000
|
| Overhead under applied variance |
|
300
|
The overhead rate is 25 percent of raw materials used plus 50 percent of direct labor costs.How much overhead was incurred for the month?
a. $23,500
b. $23,800
c. $25,000
d. $12,200
