Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $268,000 and direct labor hours to be 20,000. Actual overhead for the year was $305,000. 1. Compute the predetermined overhead rate. 2. If the company actually used 23,800 direct labor hours, how much manufacturing overhead is applied to the company's jobs?

Survey Of Economics
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Author:Tucker, Irvin B.
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Chapter6: Proudction Costs
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Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $268,000 and direct labor hours to be 20,000. Actual overhead for the year was $305,000.

1. Compute the predetermined overhead rate.

2. If the company actually used 23,800 direct labor hours, how much manufacturing overhead is applied to the company's jobs?

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