1) Luthan Company uses a predetermined overhead rate to applied overhead. It estimated that 11,000 direct labor hours is needed for production, and $257,400 of estimated total manufacturing overhead. The company incurred actual manufacturing overhead cost of $249,000 and 10,800 total direct labor hours during the period. Required:
a. compute the company’s predetermined overhead rate (POHR) for the year.
b. compute the total overhead applied to Luthan Company during the year.