Use the following information to answer questions 1 and 2
George has 4 activities Purchasing = $6 per order, Receiving = $8 per receiving report
Machine hours = $5 per hour Inspections = $6 per inspection Direct Labor hours were used as a single rate at $12 per hour.
A job uses 3 purchase orders, 3 receiving reports, 25 machine hours and 5 inspections. They also used 10 labor hours.
1. How much overhead is applied using the one rate? 18 24 1256 30
a) $120
b) $197
c) $317
d) $200
2. How much overhead is applied with ABC?
a) $120
b) $197
c) $317
d) $200