Applying Overhead Using a Predetermined Rate Mel’s Tool & Die uses a job order cost system. The following debits (credits) appeared in Work in Process for October:

Mel’s applies overhead to production at a predetermined rate of 80 percent based on direct labor cost.
Job 613, the only job still in process at the end of May, has been charged direct labor of $6,750.
Required What cost amount of direct materials was charged to job 613?

May 1... For the month For the month For the month For the month Description Balance Direct materials Direct labor Factory overhead To finished goods Amount $ 13,500 81,000 54,000 43,200 (162,000)