The predetermined overhead rate is 80% of direct labor cost. During he month, $700,000 of factory labor costs were incurred of which $100,000 was indirect labor. The amount of overhead debited to work in process inventory should be

surely you have answered your own question, simple mathematics, determine the value of direct labour, etc, etc

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Originally Posted by paraclete

surely you have answered your own question, simple mathematics, determine the value of direct labour, etc, etc

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. Doesn't help. I'm struggling with the question I don't know how to solve it

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Originally Posted by jamiehammock

the predetermined overhead rate is 80% of direct labor cost. During he month, $700,000 of factory labor costs were incurred of which $100,000 was indirect labor The amount of overhead debited to work in process inventory should be

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The answer to the problem lies in basic comprehension and logic

if you are given the value of indirect labour and the value of factory labour costs then what remains must be direct labour. The overhead rate is applied to direct labour so the amount debited to work in progress is direct labour multiplied by the overhead rate

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Originally Posted by paraclete

The answer to the problem lies in basic comprehension and logic

if you are given the value of indirect labour and the value of factory labour costs then what remains must be direct labour. The overhead rate is applied to direct labour so the amount debited to work in progress is direct labour multiplied by the overhead rate

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So I take 700000-100000=600000x .80?

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Originally Posted by jamiehammock

So I take 700000-100000=600000x .80?

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Sounds like the way to go.