Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows:
Actual manufacturing overhead $80000
Estimated manufacturing overhead $75000
Direct labor hours incurred 4800
Direct labor hours estimated 5000
Instructions
Compute (a) the predetermined overhead rate and (b) the amount of applied manufacturing overhead.

Question

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The Answer of Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows:
Actual manufacturing overhead $80000
Estimated manufacturing overhead $75000
Direct labor hours incurred 4800
Direct labor hours estimated 5000
Instructions
Compute (a) the predetermined overhead rate and (b) the amount of applied manufacturing overhead.

Martin Company Applies Manufacturing Overhead Based on Direct Labor Hours