Leisure Life manufactures a variety of sporting equipment. The firm's predetermined overhead application rate was 150 per cent of direct labour cost. Job 101 included direct materials of $15 000 and direct labour of $6000.
The manufacturing overhead applied to Job 101 during the year was

A) $4000.
B) $6000.
C) $8000.
D) $9000.

Predetermined Overhead

An estimated overhead cost rate used to allocate overhead costs to products or services based on a planned activity level.

Direct Labour Cost

This refers to the total earnings (wages, salaries, benefits) paid to employees directly involved in the production of goods or services.

Sporting Equipment

Items and gear used in sports and physical activities to enhance performance or ensure safety.