Luthan Company uses a plantwide predetermined overhead rate of
$22.50 per direct labor-hour. This predetermined rate was 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
$269,000 and 10,800 total direct labor-hours during the period.
Required:
Determine the amount of manufacturing overhead cost that would
have been applied to all jobs during the period.
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