Luthan Company uses a plant wide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 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 $269,000 and 10,800 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.

Answer rating: 100% (QA)

Luthan Company uses a plantwide predetermined overhead rate of 2250 p... View the full answer