Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was basedon a cost formula that estimated $286,800 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 10,500 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.

Given information is: Predetermined Overhead rate = $23.90 per hour Actual labour hours = 10500

Answered: Luthan Company uses a plantwide…

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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-Garret Corporation uses a predetermined overhead rate calculated per direct labor hour. This plantwide predetermined rate was based on a cost formula that estimated 26297 of total manufacturing overhead for an estimated activity level of 3562 direct labor-hours. Calculate total costs for the Job2013 that requires 15 direct labor-hours. Hourly wage rate is $2,3. Direct materials used for the Job2013 is $37.
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