Problem 7-50 (Algo) Estimate Direct Labor Costs from Overhead Data (LO 7-2)Kenmore Fabrication estimated that direct labor cost for the year would be $645,600. The company also estimated that fixedoverhead would be $484,200 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on thebasis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($484,200) and variable overhead was alsoIncurred as expected. There was $31,050 in underapplied overhead.Required:How much did Kenmore spend on direct labor cost during the period?Actual direct labor cost

The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

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Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PA: When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead...

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Inventory Accounting

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Problem 7-50 (Algo) Estimate Direct Labor Costs from Overhead Data (LO 7-2)
Kenmore Fabrication estimated that direct labor cost for the year would be $645,600. The company also estimated that fixed
overhead would be $484,200 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the
basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($484,200) and variable overhead was also
Incurred as expected. There was $31,050 in underapplied overhead.
Required:
How much did Kenmore spend on direct labor cost during the period?
Actual direct labor cost

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