Westan Corporation uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate...
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Westan Corporation uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $280,800 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $266,000 and 11,300 total direct labor-hours during the period.
Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
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