Kilt Company had the following information for the year: Direct materials used $ 110,000 Direct labor incurred (5,000 hours) $ 150,000 Actual manufacturing overhead incurred $ 166,000 Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000. How much overhead was applied during the year?

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Business

Rocket

19 December, 07:49

Kilt Company had the following information for the year: Direct materials used $ 110,000 Direct labor incurred (5,000 hours) $ 150,000 Actual manufacturing overhead incurred $ 166,000 Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000. How much overhead was applied during the year?

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Lilah Summers · Answer 1

Applied overhead = $210,000

Explanation:

Giving the following information:

Direct materials used $ 110,000.

Direct labor incurred (5,000 hours) $ 150,000

Actual manufacturing overhead incurred $ 166,000

Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour.

Estimated direct labor hours would total 5,500 hours.

Assume the only inventory balance is an ending Work in Process balance of $17,000.

Applied overhead = overhead rate*actual direct labor hours

Applied overhead = 42*5000 = $210,000