Luthan Company uses a predetermined overhead rate of $22.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $271,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $270,000 and 11,000 total direct labor-hours during the period.
Required:
a) Determine the amount of manufacturing overhead that would have been applied to units of product during the period.