Manufacturing overhead is applied at 120 of direct labor, Accounting Basics

Manufacturing overhead is applied at 120 of direct labor

Problem

PB Popcorn manufactures gourmet caramel corn, cheese corn, and other flavors of popcorn. It expects sales of 280 cartons of popcorn in the next quarter and it plans to produce 266 cartons during the same quarter. Each carton requires 5 direct labor hours and employees are paid $18 per hour. Manufacturing overhead is applied at 120% of direct labor costs. How much is the total amount of budgeted direct labor for the quarter?

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Accounting Basics: Manufacturing overhead is applied at 120 of direct labor

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Accounting Basics: Manufacturing overhead is applied at 120 of direct labor

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