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westan Corporation uses a predetermined overhead rate of$23.10 per direct labor

ID: 2351263 • Letter: W

Question

westan Corporation uses a predetermined overhead rate of$23.10 per direct labor hour. this rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimate activity level of 12,000 directlaborhours. the companyinured actual total manufacturing overhead costs of $266,000 and 12,6000 total directlaborhours during the perioddetermine the amount of manufacturing overhead that would have been applied to all jobs during the period.

determine the amount of manufacturing overhead that would have been applied to all jobs during the period

Explanation / Answer

$8 per direct labor hour