Luthan Company uses a predetermined overhead rate of $13

Management Jun 07, 2021

Luthan Company uses a predetermined overhead rate of $13.40 pe rdirect labor-hour. this predetermined rate was based on 19,000 estimated direct labor-hours and $254,600 of estimated total manufacturing overhead.

the company incurred actual total manufacturing overhead costs of$249,000 and 18,200 total direct labor-hours during the period.

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

Expert Solution

Computation of Amount of Manufacturing Overhead applied:

Predetermined Overhead Rate = 254600/19000 = $13.40 per Direct Labor Hour

Actual Direct Labor Hours Worked = 18,200 hours

Amount of Manufacturing Overhead Applied = Actual Direct Labor Hours Worked * Predetermined Overhead Rate

= 18,200 * $13.40

Amount of Manufacturing Overhead Applied = $243,880

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote