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Applied Manufacturing Overhead

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Luthan Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on 11,000 estimated direct labor-hours and $257,400 of estimated total manufacturing overhead.
The company incurred actual total manufacturing overhead costs of $249,000 and 10,800 total direct labor-hours during the period.

Required:

Determine the amount of manufacturing overhead that would have been applied to units of product during the period.

Actual direct labor-hours ____________
x Predetermined overhead rate $ ____________

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= Manufacturing overhead applied $ ____________

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Solution Summary

The solution explains how to calculate the applied manufacturing overhead for Luthan Company

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