Garret Corporation uses a predetermined overhead rate of 627

Garret Corporation uses a predetermined overhead rate of $62.75 per direct labor-hour. This plantwide predetermined rate was based on a cost formula that estimated $9,412,500 of total manufacturing overhead for an estimated activity level of 150,000 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $9,476,275 and 155,000 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.

Solution

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