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Manufacturing overhead was estimated to be $375,000 for the year along with 25,000 direct labor hours. Actual manufacturing overheed was $368,750, actual labor hours were 26,000. The amount of manufacturing overhead applied to production would be: O $368.75 $375.000 O $383.500o O $390.000o

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Answer #1

Predetermined manufacturing overhead rate = Estimated manufacturing overhead / estimated direct labor hours

= $375,000 / 25,000 = $15 per hour

Amount of manufacturing overhead applied to production = (predetermined manufacturing overhead rate × Actual labor hours)

= $15 × 26,000

= $390,000

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