Mela Company uses a job order costing approach. Direct labor hours are used as the
allocation base for overhead costs. At the beginning of the year, it was estimated that
the company would use direct labor hours. It was estimated that the
corporation would incur $ of manufacturing overhead costs. The company
ended up using direct labor hours during the year. The actual manufacturing
overhead costs incurred during the year were $
The company reported the following cost information for job #R:
Direct material cost $
Direct labor cost per hour $
Estimated labor hours used
Actual labor hours used
What is the predetermined overhead rate for the year?
What is the total manufacturing overhead cost applied to job #R
What is the total manufacturing overhead cost applied across the year?