John Carlson Inc. uses a predetermined overhead rate based on direct labor hours to apply...
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John Carlson Inc. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. For the year, Higley Inc.'s estimated manufacturing overhead cost was $400,000 based on an estimated activity level of 100,000 direct labor hours. Actual overhead amounted to $325,000 with actual direct labor-hours totaling 110,000 for the month. What was the predetermined overhead rate used by Higley Inc.? What is the Applied Manufacturing overhead cost? Solution Estimated DLH 100,000 Actual DLH 110,000 Actual Costs 325,000.00 Estimated MOH 400,000.00
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