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37. Fuller Company allocates overhead to production based on direct labor hours. At the beginning of the year, Fuller expected $900,000 of overhead costs and 15,000 direct labor hours for the year. During the last month of operations, the following manufacturing costs were reported:

Direct materials

$42,000

Direct labor

30,000

Manufacturing overhead

75,000

How many direct labor hours were worked during the month?

A) 1,250

B) 1,500

C) 1,750

D) 3,000

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Solution Summary

The expert examines fuller company allocating overhead to production based on direct labor costs.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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