PearCo’s actual overhead for the year was $650,000 with a total of 170,000 direct labor hours worked on jobs.

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PearCo’s actual overhead for the year was $650,000 with a total of 170,000 direct labor hours worked on jobs.

How much total overhead was applied to PearCo’s jobs during the year?  Use PearCo’s predetermined overhead rate of $4.00 per direct labor hour.

Darshita Changed status to publish August 29, 2020
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Answer:

Overhead Applied During the Period

Applied Overhead

=  POHR × Actual Direct Labor Hours

=  $4.00 per DLH × 170,000 DLH 3

= $680,000

So overhead applied during  the period is $ 680000

Darshita Changed status to publish August 29, 2020

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