1. Nations Shipping determined the PDOR rate to apply overhead based on direct l

Question

1. Nations Shipping determined the PDOR rate to apply overhead based on direct labor hours would be $8.40 of MOH per direct    labor hour. The PDOR based on machine hours would be $5.20 MOH per machine hour. Job 43D used $12.40 of direct materials, 0.46 machine hours, and 18 minutes of direct labor at a cost of $13 per hour.

How much is the cost of job 43D if Nations Shipping applies overhead based on labor hours?

A. $2.52

B. $18.69

C. $18.82

D. $24.70= I ANSWERED THIS, INCORRECT

(I know based on machine hours the answer would be B, however I am stuck on labor hours)

Explanation / Answer

Dir Mat $12.40 Dir Lab ($13*18/60)$3.90 LabOH ($8.40*18/60) $2.52 Total Cost $18.82 So Ans is (b) $18.82 based on Lab Hrs OHs

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