Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based on 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.
Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based on 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based
on 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1f06f06-153b-4d2f-adf8-dcc6bc9a81b4%2F7fff860a-40d1-4b39-8a5a-97ac9dba1c3d%2F66afkq_processed.png&w=3840&q=75)
Transcribed Image Text:Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based
on 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.
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