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stanford enterprises uses job-order costing. overhead is applied on the basis of direct labor hours. the following information relates to the year just ended. data: estimated total overhead costs $ 2,75,000 estimated total direct labor hours 25,000 actual total direct labor hours 27,760
stanford enterprises uses job-order costing. overhead is applied on the basis of direct labor hours. the following information relates to the year just ended. data: estimated total overhead costs $ 2,75,000 estimated total direct labor hours 25,000 actual total direct labor hours 27,760
StanfordEnterprisesuses job-ordercostsand direct labor-hour overhead. Direct labor hours are $11 per overhead hour. The annual overhead is $305,360 based on direct labor hours.Stanford Enterprises uses job-order costing toallocateoverhead costs. In this method, overhead is applied based on the direct labor hours. For the year just ended, the estimated total overhead costs were $275,000, and the estimated total direct labor hours were 25,000. However, the actual total direct labor hours for the year were 27,760. To calculate the predetermined overheadrate, we need to divide the estimated total overhead costs by the estimated total direct labor hours. So, the predetermined overhead rate is $275,000 divided by 25,000, which equals $11 per direct labor hour. Now, to calculate the applied overhead, we multiply the actual totaldirect laborhours by the predetermined overhead rate. In this case, the applied overhead would be 27,760 multiplied by $11, which equals $305,360. It's important to note that the applied overhead is an estimate based on the predetermined overhead rate. The actual overhead costs may vary, and the difference between the applied and actual overhead is known asunderappliedor overapplied overhead.In summary, Stanford Enterprises uses job-order costing and applies overhead based on direct labor hours. The predetermined overhead rate is $11 per direct labor hour. Based on the actual total direct labor hours of 27,760, the applied overhead for the year is $305,360.To know more aboutEnterprisesbrainly.com/question/20782413#SPJ11...