Question

Kilt Company had the following information for the year:

Direct materials used $ 110,000
Direct labor incurred (5,000 hours) $ 150,000
Actual manufacturing overhead incurred $ 166,000

Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000. How much overhead was applied during the year?

Answer 1

The applied overhead is $231,000

Step-by-step explanation:

The computation of the applied overhead is shown below:

= Predetermined overhead rate × direct labor hour

= $42 × 5,500 hours

= $231,000

Since the predetermined overhead rate is given in the question, so there is no need to re calculate it.

And, the other items which are mentioned in the question are not considered in the computation part. Hence, these items would be ignored