Summit Manufacturing uses a job order cost system and applies overhead based on predetermined rates. Their overhead application rate is calculated using estimated annual overhead costs of $375,000 and estimated direct labor hours of 12,500. In March 2024, actual direct labor hours were 11,200. Calculate the amount of factory overhead applied in March. (Round the answer to the nearest whole dollar.)

Summit Manufacturing uses a job order cost system and applies overhead based on predetermined rates. Their overhead application rate is calculated using estimated annual overhead costs of $375,000 and estimated direct labor hours of 12,500. In March 2024, actual direct labor hours were 11,200. Calculate the amount of factory overhead applied in March. (Round the answer to the nearest whole dollar.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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