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Question: exercise 22 apply overhead cost to jobs lo22 luthan company...

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Exercise 2-2 Apply Overhead Cost to Jobs [LO2-2]

Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 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 $267,000 and 11,500 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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