YouTube ork Chapter 20 Help Save & ExitSubmt 2 Exercise 2-2 Apply Overhead Cost

Question

YouTube ork Chapter 20 Help Save & ExitSubmt 2 Exercise 2-2 Apply Overhead Cost to Jobs [LO2-2] Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate wes based on a cost formula that estimaned $286,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor The company incurred actusl total manufacturing overhead cost of $265,000 and 11500 total direct labor hours during the period Required: Determine the amount of manufacturing overhead cost thart would have been applied to all jobs during the period Ul command option

Explanation / Answer

Manufacturing Overhead Applied = Predetermined Overhead Rate * Actual Total Direct Labor Hour

= $ 23.90 * 11,500 Direct Labor Hours

= $ 274,850

Hence the correct answer is $ 274,850

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