Luthan Company uses a plantwide predetermined overhead rate of $22.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $266,400 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 $266,000 and 12,600 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.
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Home » Business » Luthan Company uses a plantwide predetermined overhead rate of $22.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $266,400 of total manufacturing overhead cost for an estimated activity level of 12,000