Question

Kilt Company had the following information for the year: Direct materials used $ 110,000 Direct labor incurred (5,000 hours) $ 150,000 Actual manufacturing overhead incurred $ 166,000 Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000. How much overhead was applied during the year?

Answer 1

Answer:

Applied overhead= $210,000

Explanation:

Giving the following information:

Direct materials used $ 110,000.

Direct labor incurred (5,000 hours) $ 150,000

Actual manufacturing overhead incurred $ 166,000

Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour.

Estimated direct labor hours would total 5,500 hours.

Assume the only inventory balance is an ending Work in Process balance of $17,000.

Applied overhead= overhead rate*actual direct labor hours

Applied overhead= 42*5000= $210,000