Jackson Manufacturing is using a manufacturing overhead application rate of 130% of direct labor dollars. A job uses 17 direct labor hours at $27 per hour. How much overhead should be applied to the job? (Round your answer to the nearest dollar.)

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Quizplus · Accepted Answer

The overhead applied is calculated as 130% of the direct labor cost. Direct labor cost = 17 hours * $27/hour = $459. Overhead applied = 130% of $459 = 1.3 * $459 = $596.70, which rounds to $597.

Jackson Manufacturing Is Using a Manufacturing Overhead Application Rate of 130