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Question: Luthan Company Uses a plantwide predetermined overhead rate of $23.40 per direct labor hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor hours.
The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total direct labor hours during the period.
Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
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