1) Luthan Company uses a predetermined overhead rate to applied overhead. It estimated that 11,000 direct labor hours is needed for production, and $257,400 of estimated total manufacturing overhead. The company incurred actual manufacturing overhead cost of $249,000 and 10,800 total direct labor hours during the period. Required:
a. compute the company’s predetermined overhead rate (POHR) for the year.
b. compute the total overhead applied to Luthan Company during the year.

Ron and nick chose to start their own businesses. ron wanted to start an ice cream shop, and nick wanted to launch a television manufacturing company. ron and nick had equal amounts of funds on hand and no government regulations restricting them. months later, however, ron has already set up his business, while nick is still struggling to raise additional funds to build a factory. what was the main factor that affected nick’s business? a. an irrelevant business idea b. low demand for tvs in his country c. high start-up costs d. lack of labor economics