Luthan Company uses a plant wide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate
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Question:
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.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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