Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing
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Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $250,000 and direct labor hours to be 20,000. Actual overhead for the year was $260,000.
1. Compute the predetermined overhead rate
2. If the company actually used 22,000 direct labor hours, how much manufacturing overhead is applied to their job?
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