Eestan Corporation uses a predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $268,000 and 12,500 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.