Ana Carillo and Associates is a medium-sized company located near a… Ana Carillo and Ass

Ana Carillo and Associates is a medium-sized company located near a… Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size.One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 790 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows.Determine the overhead application rate  Standard(1,000 units) Actual(790 units) Indirect materials $  10,700  $  11,000  Indirect labor 38,400  45,500  (Fixed) Manufacturing supervisors salaries 20,100  19,600  (Fixed) Manufacturing office employees salaries 11,600  11,200  (Fixed) Engineering costs 24,100  22,300  Computer costs 8,900  8,900  Electricity 2,200  2,200  (Fixed) Manufacturing building depreciation 7,100  7,100  (Fixed) Machinery depreciation 2,700  2,700  (Fixed) Trucks and forklift depreciation 1,300  1,300  Small tools 600  1,300  (Fixed) Insurance 500  500  (Fixed) Property taxes 300  300    Total $128,500  $133,900   Accounting Business Managerial Accounting Share QuestionEmailCopy link