Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was base on a cost formula that estimated $270,000 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 $267,000 and 12,600 total direct labor-hours during the perlod. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs durlng the period.

Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was base on a cost formula that estimated $270,000 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 $267,000 and 12,600 total direct labor-hours during the perlod. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs durlng the period.

Name: Luthan Company uses a plantwide predetermined overhead rate of $22.50
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Description: Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was basecon a cost formula that estimated $270,000 of total manufacturing overhead cost for an estimated activity level of 12,000 di

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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