Millenium Manufacturing is considering two methods for applying overhead. Estimated data for the next year, 2013, follows. Estimated direct labor costs $\quad \$ 871,875$
Estimated direct labor hours $\quad 90,000$
Estimated overhead costs $\quad \$ 558,000$ 1. What would be the overhead application rate based on direct labor costs?
2. What would be the overhead application rate based on direct labor hours?
3. If a job requires 650 hours of direct labor, what would be the amount of overhead applied to the job using the rate based on direct labor hours?

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The Answer of Millenium Manufacturing is considering two methods for applying overhead. Estimated data for the next year, 2013, follows. Estimated direct labor costs $\quad \$ 871,875$
Estimated direct labor hours $\quad 90,000$
Estimated overhead costs $\quad \$ 558,000$ 1. What would be the overhead application rate based on direct labor costs?
2. What would be the overhead application rate based on direct labor hours?
3. If a job requires 650 hours of direct labor, what would be the amount of overhead applied to the job using the rate based on direct labor hours?

Millenium Manufacturing Is Considering Two Methods for Applying Overhead $871,875\quad \$ 871,875$871,875

Millenium Manufacturing Is Considering Two Methods for Applying Overhead $\quad \$ 871,875$