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Hall Company manufactures a line of lightweight running shoes. CEO Kevin Hall estimated that the company would incur $6,080,000 in manufacturing overhead during the coming
Hall Company manufactures a line of lightweight running shoes. CEO Kevin Hall estimated that the company would incur $6,080,000 in manufacturing overhead during the coming year. When Hall Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $16/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $15.20/MH. Additionally, he estimated the company would operate at a level requiring 380,000 direct labor hours and 400,000 machine hours. At the end of the year, Hall Company had worked 375,000 direct labor hours, used 410,000 machine hours, and incurred $6,090,000 in manufacturing overhead. (a) If Hall Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year
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