Luthan Company uses a predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on 12,000 estimated direct labor-hours and $267,600 of estimated total manufacturing overhead.
The company incurred actual total manufacturing overhead costs of $266,000 and 11,900 total direct labor-hours during the period.
1. Determine the amount of manufacturing overhead that would have been applied to units of product during the period