Luthan company uses a plantwide predetermined overhead rate of $23.20 per direct labor-hour. this predetermined rate was based on a cost formula that estimated $278,400 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 12,100 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.

Manufacturing overhead cost applied=  $280,720

Explanation:

Giving the following information:

Plantwide predetermined overhead rate of $23.20 per direct labor-hour.

Estimated $278,400 of total manufacturing overhead cost.

Estimated activity level of 12,000 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $269,000 and 12,100 total direct labor-hours during the period.

Manufacturing overhead cost applied= actual direct labor hours* predetermined overhead rate

Manufacturing overhead cost applied= 12100* 23.20= $280,720

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