How much overhead was applied to production during the year

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Question - Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,900 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,700 direct labor hours. During the year, 130,300 pounds of raw materials were purchased at $0.93 per pound. All materials purchased were used during the year.

Standard materials price per pound: .95

Standard materials quantity per unit 4.6

Standard hours allowed 44,640

Actual hours worked 45,140

Actual rate per hour 12.80

Predetermined overhead rate 6.60

Standard cost per unit 35.73

Required - How much overhead was applied to production during the year?

Reference no: EM132530445

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