Bakker Corporation applies manufacturing overhead on the basis of direct labor-h

Question

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $73,140 and 2,300 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $75,290 and actual direct labor-hours were 2,200.

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $73,140 and 2,300 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $75,290 and actual direct labor-hours were 2,200.

Explanation / Answer

applied POHR = 73140/2300 = 31.8

applied manufacturing overhead=> 31.8 * 2200 = 69960

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