Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate...

Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $273,600 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 $268,000 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.

manufacturing overhead applied: ____________

Expert Solution

Manufacturing overhead applied=predetermined overhead rate*Actual direct labor hour

=22.8*11700

which is equal to

=$266760

ekkarill92 answered 2 years ago

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