Maria's Custom Tailoring Is Very Labor Intensive

Maria's Custom Tailoring is very labor intensive. Therefore, Maria has decided to use direct labor hours as the cost driver for assigning overhead costs to specific jobs. During the month of February, the company incurred overhead costs of $4,800. Total direct labor hours during the month totaled 1,200. Out of a total of 45 different jobs worked on during the month, Job #115 required 16 direct labor hours to complete and Job #195 required 15 direct labor hours. The total amount of overhead allocated to these two jobs is:

A) $124.00
B) $187.50
C) $137.50
D) $ 31.00

Correct Answer:

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