E&J Auto Body Shop estimated overhead cost for the coming year will be $15,000 and 5,000 direct labor hours will be worked. The amount of overhead cost applied by E&J Auto Body Shop to one of its jobs, if the jobs required 10 direct labors hours to complete, would be :

a. $150
b. $ 30
c. $ 50
d. $ 15

correct option is b. $ 30

Explanation:

given data

overhead cost = $15,000

direct labor hours = 5,000

required direct labors hours = 10

solution

we get here Fixed Overhead Rate that is

Fixed Overhead Rate = estimated overhead cost ÷ direct labor hours ........1

Fixed Overhead Rate =  

Fixed Overhead Rate = $3 per labor hour

and

Job overhead applied express as

overhead = Fixed Overhead Rate  × required direct labors hours  ..........2

overhead  = $3 × 10

overhead = $30

so correct option is b. $ 30

answer; /// i believe the correct answer is (all of the above);