Kenmore Fabrication estimated that direct labor cost for the year would be $640,800. The company also estimated that fixed overhead would be $480,600 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 ($480,600) and variable overhead was also incurred as expected. There was $30,150 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost $ 619,044

Kenmore Fabrication estimated that direct labor cost for the year would be $640,800. The company also estimated that fixed overhead would be $480,600 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 ($480,600) and variable overhead was also incurred as expected. There was $30,150 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost $ 619,044

Name: Kenmore Fabrication estimated that direct labor cost for the year wou
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Description: Kenmore Fabrication estimated that direct labor cost for the year would be $640,800.The company also estimated that fixed overhead would be $480,600 and variableoverhead would be 35 percent of direct labor cost. Kenmore applies its overhead on theba

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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