Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated)...

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Sherfield Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the endof the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. The Sherfield Company’s production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production?

    • 6 years ago
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