COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
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In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs RM210, 000 of factory labor costs, of which RM180, 000 is direct labor and RM30, 000 is indirect labor. Actual overhead incurred was RM200, 000. The amount of overhead added to Work in Process Inventory should be:
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RM200, 000.
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RM144, 000.
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RM168, 000.
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RM160, 000.
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Explanation:
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