Question

EB5.

LO 4.3Steinway’s records show their work in process inventory had a beginning balance of $3,000 and an ending balance of $3,500. How much overhead was applied if the records also show the following:

Answer 1

$

Material used 2,500

Direct labour 5,000

Overhead applied 200

Cost of goods sold 7,700

Step-by-step explanation:

The overhead applied is the difference between cost of goods sold and cost of material used and direct labour. The cost of goods sold is $7,700 while the cost of material and labour is $7,500. The difference of $200 represents the overhead applied.