Question

​Lakeside, Inc. estimated manufacturing overhead costs for the year at $ 372 comma 000​, based on 181 comma 000 estimated direct labor hours. Actual direct labor hours for the year totaled 191 comma 000. The manufacturing overhead account contains debit entries totaling $ 391 comma 000. The Manufacturing Overhead for the year was​ ________. (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

Answer 1

The applied manufacturing overhead will be $392,543

Step-by-step explanation:

`(Cost\: Of \:Manufacturing \:Overhead)/(Cost \:Driver)= Overhead \:Rate`

Remember that the rate is done by dividing the overhead cost over a cost driver. Direct labour hours is the cost driver for this task.

372,000/181,000 = 2.0552

`cost \: driver * rate = applied \: overhead`

191,000 x 2.0552 = 392,543.2