EXERCISE 3–2 Apply Overhead [LO3–2] Lexter Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead for an estimated activity level of 11,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $249,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
EXERCISE 3–2 Apply Overhead [LO3–2] Lexter Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead for an estimated activity level of 11,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $249,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EXERCISE 3–2 Apply
Lexter Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was
based on a cost formula that estimated $257,400 of total manufacturing overhead for an estimated activity level of
11,000 direct labor-hours. The company incurred actual total
total direct labor-hours during the period.
Required:
Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
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