For jacobs company, the predetermined overhead rate is 70% of direct labor cost. during the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor. actual overhead incurred was $320,000. the amount of overhead debited to work in process inventory should be:
First find the amount of direct labor cost by subtracting the amount of indirect labor cost from the amount of factory labor cost Direct labor cost is 600,000−140,000=460,000
The amount of overhead debited to work in process inventory should be 460,000×0.7=322,000
