Question: During 2007, Kent Company applies overhead using a normal costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for

During 2007, Kent Company applies overhead using a normal costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, estimated overhead for the year was $1,800,000. Actual direct labor hours for 2007 were 140,000 and actual overhead was $1,700,000. Job KAL was produced during 2007. The job used $20,000 worth of materials, $30,000 worth of direct labor (making $15 per hour). What is the normal cost of the job?

Answer. $74,000

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