Predetermined overhead rate-200 per cent of direct labour


The following data apply to Stratford Ltd.

Direct Materials inventory, beginning of the year

$6,500

Direct Materials inventory, end of the year

$2,000

Direct Materials purchased during the year

$45,000

Work in process inventory, beginning of the year

$9,500

Manufacturing overhead applied during the year

$40,000

Work in process inventory, end of the year

$15,000

Predetermined overhead rate-200 per cent of direct labour cost

Calculate the amount of direct labour cost incurred during the year.

Select one:

a. $22,000

b. $10,000

c. $20,000

d. $40,000

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Business Management: Predetermined overhead rate-200 per cent of direct labour
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