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Lewis Company manufactures a line of lightweight running shoes. CEO Edward Lewis estimated that the company would incur $2,520,000 in manufacturing overhead during the coming
Lewis Company manufactures a line of lightweight running shoes. CEO Edward Lewis estimated that the company would incur $2,520,000 in manufacturing overhead during the coming year. When Lewis Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $12/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $4.20/MH. Additionally, he estimated the company would operate at a level requiring 210,000 direct labor hours and 600,000 machine hours. At the end of the year, Lewis Company had worked 205,000 direct labor hours, used 610,000 machine hours, and incurred $2.533,000 in manufacturing overhead. (a) If Lewis Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year? Overhead applied $
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