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Murphy Manufacturing estimated total manufacturing overhead for 2021 to be $100,000 and uses direct labor-hours as the allocation base. They estimated that 5,000 hours would be used. Actual overhead for 2021 was $120,000 and actual direct labor-hours were 7,500. The overhead applied to a job completed during 2021 that used 200 direct labor-hours was ______.

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Answer:

$4,000

Explanation:

Calculation for what The overhead applied to a job completed during 2021 that used 200 direct labor-hours was

First step is to calculate The predetermined overhead rate

Predetermined overhead rate = $100,000/5,000 direct labor-hours

Predetermined overhead rate = 20 per direct labor-hour

Now let calculate The overhead applied to the job

Overhead applied to the job = $20 per direct labor-hours *200 direct labor-hours

Overhead applied to the job= $4,000

Therefore The overhead applied to a job completed during 2021 that used 200 direct labor-hours was $4,000

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