At the beginning of the year, managers at King Industries estimated $680,000 in manufacturing overhead, 56,000 direct labor hours, and 75,000 machine hours. Actual manufacturing costs at the end of the year were $425,000 in manufacturing overhead. During the year 31,000 direct labor hours and 62,000 machine hours were incurred. If overhead is applied based on direct labor hours, how much overhead was applied during the year?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3EB: A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was...
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At the beginning of the year, managers at King Industries estimated $680,000 in manufacturing overhead, 56,000 direct labor hours, and 75,000 machine hours. Actual manufacturing costs at the end of the year were $425,000 in manufacturing overhead. During the year 31,000 direct labor hours and 62,000 machine hours were incurred. If overhead is applied based on direct labor hours, how much overhead was applied during the year?

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