The Chesapeake Bay Company, Inc. uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. For the year ended December 31, 2009, the company's estimated manufacturing overhead was $600,000, based on an estimated volume of 50,000 direct labor hours, at a direct labor rate of $6.00 per hour. Actual manufacturing overhead amounted to $620,000, with actual direct labor cost of $325,000. What was the manufacturing overhead for the year?© BrainMass Inc. brainmass.com June 4, 2020, 2:50 am ad1c9bdddf
Budgeted DL cost = 50000*6 = $300,000
Predetermined Overhead ...
The solution computes the Manufacturing Overhead for Chesapeake Bay Company, Inc.