Application of overhead
Pyramid Corporation manufactures a single product.As a basis for determining an overhead application rate,the production manager made the following estimates for the coming year: In the following month,19,500 units were produced,involving direct labor costs of $78,000 and requiring 1,073 machine-hours.
Determine the amount of manufacturing overhead to be applied to production during this month,assuming that the overhead application rate is based upon:
(a)Estimated total direct labor cost for the year.$___________
(b)Estimated total machine-hours for the year.$___________

Question

Application of overhead
Pyramid Corporation manufactures a single product.As a basis for determining an overhead application rate,the production manager made the following estimates for the coming year:  In the following month,19,500 units were produced,involving direct labor costs of $78,000 and requiring 1,073 machine-hours.
Determine the amount of manufacturing overhead to be applied to production during this month,assuming that the overhead application rate is based upon:
(a)Estimated total direct labor cost for the year.$___________
(b)Estimated total machine-hours for the year.$___________

Quizplus · Accepted Answer

The Answer of Application of overhead
Pyramid Corporation manufactures a single product.As a basis for determining an overhead application rate,the production manager made the following estimates for the coming year:  In the following month,19,500 units were produced,involving direct labor costs of $78,000 and requiring 1,073 machine-hours.
Determine the amount of manufacturing overhead to be applied to production during this month,assuming that the overhead application rate is based upon:
(a)Estimated total direct labor cost for the year.$___________
(b)Estimated total machine-hours for the year.$___________

Application of Overhead Pyramid Corporation Manufactures a Single Product.As a Basis for Determining