If manufacturing overhead is applied at a rate of $1.62 per direct labor dollar and the Department B employee worked 198 hours at $12.50 an hour on Job L1147, then the applied overhead would be

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Quizplus · Accepted Answer

The applied overhead is calculated by multiplying the direct labor cost by the overhead rate. The direct labor cost is 198 hours * $12.50/hour = $2,475. The overhead rate is $1.62 per direct labor dollar, so the applied overhead is $2,475 * $1.62 = $4,009.50.

If Manufacturing Overhead Is Applied at a Rate of $1