Luthan Company uses a plantwide predetermined overhead rate of $$22\mathrm{.}50$ per direct labor$-$hour. This predetermined rate is based on a cost formula that estimated $$270,000$ of total manufacturing overhead cost for an estimated activity level of $12,000$ direct labor$-$hours.

The company incurred actual total manufacturing overhead cost of $$270,000$ and $11,200$ total direct labor$-$hours.

Required:

Calculate the manufacturing overhead cost applied to all jobs.

Answer is complete but not entirely correct.

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