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The Work in Process Inventory account of a manufacturing company has a $3,850 debit balance. The company applies overhead using direct labor costs. The cost sheet of the only job still in the process that shows a direct material cost of $1,790 and a direct labor cost of $770. Therefore, the amount of applied overhead is:

Answer :

Answer:

$1,290

Explanation:

Given that,

Outstanding Work in Process Inventory account = $3,850

Direct material cost = $1,790

Direct labor cost = $770

Amount of applied overhead:

= Outstanding Work in Process Inventory account - Direct material cost - Direct labor cost

= $3,850 - $1,790 - $770

= $1,290

Therefore, the amount of applied overhead is $1,290.

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