Middleton Corporation uses the normal costing system to determine the amount of overhead to be applied to production. The predetermined overhead rate for 2018 was $32.40 per DLH. Middleton estimated the annual activity level to be 7,500 DLHs. Actual DLHs for the year were 8,200. What was the total amount of overhead applied for the year?

total amount of overhead applied = $265680

Explanation:

given data

Actual direct labor hours = 8200

overhead rate = 32.40 per DLH

to find out

total amount of overhead applied

solution

we will apply here formula for total amount of overhead applied that is

total amount of overhead applied = Actual direct labor hours * overhead rate ... 1

put here value in equation 1 we get

total amount of overhead applied = 8200 * $32.40

total amount of overhead applied = $265680