Charlton Woodworking, Inc., specializes in custom restoration of antique furniture. The company costs work using a job order costing system and applies overhead using a single plant-wide rate based on direct labor hours. For the coming year, estimated total overhead for the firm is $275,000 and estimated direct labor hours are 5,000.
Required:
a. What is the predetermined overhead rate that will be used to apply overhead to individual restoration jobs?
b. Charlton Woodworking recently completed a restoration for Victoria's Corner that required 18 hours of direct labor time. What amount of overhead will be charged to this job?

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The Answer of Charlton Woodworking, Inc., specializes in custom restoration of antique furniture. The company costs work using a job order costing system and applies overhead using a single plant-wide rate based on direct labor hours. For the coming year, estimated total overhead for the firm is $275,000 and estimated direct labor hours are 5,000.
Required:
a. What is the predetermined overhead rate that will be used to apply overhead to individual restoration jobs?
b. Charlton Woodworking recently completed a restoration for Victoria's Corner that required 18 hours of direct labor time. What amount of overhead will be charged to this job?