The following information is provided for the year: actual direct labor hours worked 36,000 budgeted overhead $300,000 budgeted direct labor hours 30,000 actual overhead costs incurred $360,000 if normal costing is used, the amount of overhead applied for the year is:
group of answer choices

a. $299,880
b. $300,000
c. $380,000
d. $360,000

Option (D) is correct.

Explanation:

Overhead rate = Budgeted overhead ÷ budgeted direct labor hour

                         = $300,000 ÷ 30,000

Overhead rate = $10 per labor hour

Overhead applied:

=  Overhead rate × Actual direct labor hours worked

=  $10 per labor hour  × 36,000

= $360,000

Therefore, the amount of overhead applied for the year is $360,000.

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