Luthan Company uses a plantwide predetermined overhead rate of $23.10 per direct labor-hour. This predetermined rate was
Posted: Sat Feb 19, 2022 2:32 pm
Luthan Company uses a plantwide predetermined overhead rate of
$23.10 per direct labor-hour. This predetermined rate was based on
a cost formula that estimated $277,200 of total manufacturing
overhead cost for an estimated activity level of 12,000 direct
labor-hours.
The company incurred actual total manufacturing overhead cost of
$266,000 and 11,700 total direct labor-hours during the period.
Required:
Determine the amount of manufacturing overhead cost that would
have been applied to all jobs during the period.
$23.10 per direct labor-hour. This predetermined rate was based on
a cost formula that estimated $277,200 of total manufacturing
overhead cost for an estimated activity level of 12,000 direct
labor-hours.
The company incurred actual total manufacturing overhead cost of
$266,000 and 11,700 total direct labor-hours during the period.
Required:
Determine the amount of manufacturing overhead cost that would
have been applied to all jobs during the period.