Kamper Company allocates their manufacturing overhead based on direct labor hours. The total estimated overhead is $475,000 and total estimated direct labor hours are 30,800. If the actual direct labor hours were 31,360, what was the total manufacturing overhead applied? (Round intermediate calculations to two decimal places.)

Question

Quizplus · Accepted Answer

The overhead rate per direct labor hour is calculated as total estimated overhead divided by total estimated direct labor hours: $475,000 / 30,800 = $15.42 per hour. The total manufacturing overhead applied is then calculated by multiplying this rate by the actual direct labor hours: $15.42 * 31,360 = $483,571.20.

Kamper Company Allocates Their Manufacturing Overhead Based on Direct Labor