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 $95,790 and 3,100 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $97,590 and actual direct labor-hours were 3,000. The applied manufacturing overhead for the year was: (Round your intermediate calculations to 2 decimal places.) $92,700 $89,724 $94,380 $97,548

Explanation / Answer

The applied manufacturing overhead for the year=Pre determined overhead /pre determined labor hours*Actual labor hours=95,790/3,100*3,000=$92,700.

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