Carattini Incorporated makes a single product-an electrical motor used in many l

Question

Carattini Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted manufacturing overhead Budgeted hours Standard hours allowed for the actual production Total actual manufacturing overhead Actual hours Skipped $360,000 36,000 labor- 34,200 labor- 37,200 labor- hours Print hours $340,376 hours The total amount of manufacturing overhead applied is closest to

Explanation / Answer

Predetermined overhead rate = 360000/36000 = $10 Total amount of manufacturing overhead applied = 34200*10 = $342000

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