Question - The following information was reported by Bard Company relating to its first year of operations. Note that Bard has only identified direct labor and direct materials as direct costs.
Item Expected Cost Actual Cost Advertising Expenditures $153,900 $158,100 Depreciation on Factory Equipment $576,900 $571,100 Direct Labor $1,102,000 $840,000 Direct Materials $1,246,000 $1,249,000 Factory Supplies $98,600 $101,300 Head Office General Expenditures $303,800 $376,100 Head Office Salaries $332,000 $398,900 Heating in Factory $117,100 $116,100 Income Taxes $2,271,000 $2,379,000 Machine Repair and Maintenance $101,500 $99,300 Production Supervisor Wages $123,700 $117,400 Rent for Factory $961,500 $936,700 Office Supplies $116,900 $112,200 Sales Expenditures $470,300 $491,400 Total $7,975,200 $7,946,600 Bard
Company allocates manufacturing overhead using a predetermined overhead rate. Bard uses direct labor hours as an allocation base and incurs 38,000 direct labor hours.
a) What is the total estimated manufacturing overhead cost?