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

Question

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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 direct labor hours.Velton estimates a total of $300,000 in manufacturing overhead costs and 5,000 direct labor hours for the coming year.In December, Velton's controller reported actual manufacturing overhead incurred of $320,000 and 4,900 direct labor hours used during the year.
Required:
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