Grassland Corporation had actual manufacturing overhead costs of $32,500 for the past year. Direct labor cost is $12.00 per hour. Manufacturing overhead is allocated at a rate of $4.00 per direct labor hour. Manufacturing overhead was overallocated for the year by $2,500.
Calculate:
a. Allocated manufacturing overhead costs for year
b. Actual number of direct labor hours worked in year

Question

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The Answer of Grassland Corporation had actual manufacturing overhead costs of $32,500 for the past year. Direct labor cost is $12.00 per hour. Manufacturing overhead is allocated at a rate of $4.00 per direct labor hour. Manufacturing overhead was overallocated for the year by $2,500.
Calculate:
a. Allocated manufacturing overhead costs for year
b. Actual number of direct labor hours worked in year

Grassland Corporation Had Actual Manufacturing Overhead Costs of $32,500 for the Past