How much overhead should be applied


BCS Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:

Estimated
Actual

Overhead cost
$174,000
$171,000

Direct labor hours
5,800
5,900

Direct labor cost
$87,000
$89,975

How much overhead should be applied in total during August?

 

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Accounting Basics: How much overhead should be applied
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