1. Company uses a normal, functional-based (traditional) cost system and applies overhead based on direct labor hours. The following information is available for the year.

	Estimated	Actual
Overhead cost	$400,000	$440,000
Direct labor hours	40,000	50,000

Calculate the predetermined overhead rate for the year.

		$8.80 per direct labor hour
		$11.00 per direct labor hour
		$8.00 per direct labor hour
		$10.00 per direct labor hour

2. Company uses a normal, functional-based (traditional) cost system and applies overhead based on direct labor hours. The following information is available for the year.

	Estimated	Actual
Overhead cost	$400,000	$440,000
Direct labor hours	40,000	50,000

Calculate the applied overhead for the year.

Note: Give our answer using dollar signs and commas but not decimal points (cents).

Example: $12,345

3. Company reported the following amounts for the year.

Estimated overhead	$120,000
Applied overhead	123,000
Actual overhead	119,000

Determine the overhead variance for the year.

		$4,000 underapplied
		$1,000 underapplied
		$3,000 overapplied
		$4,000 overapplied

4. Company prepared the following estimates at the beginning of the year.

	Department 1	Department 2	Total
Overhead cost	$405,000	$110,000	$515,000
Direct labor hours	28,750	100,000	128,750
Machine hours	90,000	--------	90,000

Quiz Company reported the following actual results for the month of July.

	Department 1	Department 2	Total
Overhead cost	$34,000	$9,370	$43,370
Direct labor hours	2,350	8,600	10,950
Machine hours	7,400	--------	7,400

Assume that Quiz Company uses a plant-wide predetermined overhead rate and applies overhead based on direct labor hours.

Determine the applied overhead for the month of July.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Company prepared the following estimates at the beginning of the year.

	Department 1	Department 2	Total
Overhead cost	$405,000	$110,000	$515,000
Direct labor hours	28,750	100,000	128,750
Machine hours	90,000	--------	90,000

5. Company reported the following actual results for the month of July.

	Department 1	Department 2	Total
Overhead cost	$34,000	$9,370	$43,370
Direct labor hours	2,350	8,600	10,950
Machine hours	7,400	--------	7,400

Assume that Quiz Company uses departmental overhead rates and applies overhead in Department 1 based on machine hours and applies overhead in Department 2 based on direct labor hours.

Determine the applied overhead for the month of July.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345