exercise 2-2 (static) apply overhead cost to jobs lo2-2 lutheran company uses a plantwide predetermined…

exercise 2-2 (static) apply overhead cost to jobs lo2-2 lutheran 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.

exercise 2-2 (static) apply overhead cost to jobs lo2-2 lutheran 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.

Answer

Explanation:

Step1: Recall the formula for applied manufacturing overhead

Applied manufacturing overhead = Predetermined overhead rate × Actual direct - labor - hours

Step2: Identify the values

The predetermined overhead rate is $23.40 per direct - labor - hour and the actual direct - labor - hours are 10,800.

Step3: Calculate the applied manufacturing overhead

Applied manufacturing overhead=$23.40\times10800$ $23.40\times10800 = 23.4\times(10000 + 800)=23.4\times10000+23.4\times800$ $=234000+18720 = 252720$

Answer:

$252,720$