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Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $100,000, respectively. In addition, budgeted variable and fixed factory overhead were $50,000 and $25,000, respectively. Actual costs and hours for the year were as follows:
For a particular job,1,500 direct labor hours were used. Using direct labor hours as the cost driver, what amount of overhead should be applied to this job? A. $5,625 B. $5,357 C. $7,500 D. $3,214
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