Luthan Company uses a plantwide predetermined overhead rate of $23.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $283,200 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours.

Luthan Company uses a plantwide predetermined overhead rate of $23.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $283,200 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 $265,000 and 11,600 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.

Answer