Jackson uses a predetermined overhead rate.Overhead for the next twelve months is estimated to be $400,000.Jackson applies overhead as a percentage of direct labor cost.Direct labor costs are estimated to be $500,000 for the next year.During the year actual direct labor costs amounted to $520,000 and the actual overhead was as follows:

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The Answer of Jackson uses a predetermined overhead rate.Overhead for the next twelve months is estimated to be $400,000.Jackson applies overhead as a percentage of direct labor cost.Direct labor costs are estimated to be $500,000 for the next year.During the year actual direct labor costs amounted to $520,000 and the actual overhead was as follows:

Jackson Uses a Predetermined Overhead Rate