Velton Corporation produces toddlers' plastic slides.In preparing the current budget,Velton's management chooses to use an overhead base of labor hours.Velton estimates a total of $300,000 in manufacturing overhead costs and 5,000 labor hours for the coming year.In December,Velton's controller reported actual manufacturing overhead incurred of $320,000 and 4,900 labor hours used during the year.
a.What is Velton's predetermined overhead rate for the year?
b.How much manufacturing overhead did Velton apply during the year?

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The Answer of Velton Corporation produces toddlers' plastic slides.In preparing the current budget,Velton's management chooses to use an overhead base of labor hours.Velton estimates a total of $300,000 in manufacturing overhead costs and 5,000 labor hours for the coming year.In December,Velton's controller reported actual manufacturing overhead incurred of $320,000 and 4,900 labor hours used during the year.
a.What is Velton's predetermined overhead rate for the year?
b.How much manufacturing overhead did Velton apply during the year?

Velton Corporation Produces Toddlers' Plastic Slides