Question
Your Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead
Your Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000.
What is POR?
How many actual hours were worked during the period?Round to the nearest hour.
How much overhead was applied for the period?
(Formula: Manufacturing overhead applied=Predetermined overhead rateActual direct labor-hours)
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