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Luthan Company uses a plantwide 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 cost for an estimated activity level of 11,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 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 $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 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.
Manufacturingoverheadcost is referred to as the totalsumof theamountthat includes all theindirectcosts incurred in themanufacturingof theproducts. This cost isaddedto theproductsof thecompanyin order to determine all the direct and indirect laborcosts.Amount ofmanufacturingoverheadcost= $252,720Thepredetermined overheadrate is based on 11,000 direct labor hours.Therateidentified = $23.40Since the actual activity is less than thestandardlaborhours, that isactuallaborhours= 10,800Thus, actualoverheadsto be applied based onpredeterminedrate shall be = Ratedeterminedactualhours=To know more about thecalculationof themanufacturingoverheadcosts. refer to the link below:brainly.com/question/15059357...
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