Application of Overhead Pyramid Corporation Manufactures a Single Product. as a Basis for a Basis

question 87

Short Answer

Application of overhead
Pyramid Corporation manufactures a single product. As a basis for determining an overhead application rate, the production manager made the following estimates for the coming year:

In the following month, 19,500 units were produced, involving direct labor costs of $78,000 and requiring 1,073 machine-hours.
Determine the amount of manufacturing overhead to be applied to production during this month, assuming that the overhead application rate is based upon:
(a) Estimated total direct labor cost for the year. $____________
(b) Estimated total machine-hours for the year. $____________