Question
2) LM Company listed the following data for 2016: Budgeted factory overhead $1,143,800 Budgeted direct labor hours 86,000 Budgeted machine hours 28,595 Actual factory
2) LM Company listed the following data for 2016: Budgeted factory overhead $1,143,800 Budgeted direct labor hours 86,000 Budgeted machine hours 28,595 Actual factory overhead 1,101,770 Actual direct labor hours 87,200 Actual machine hours 28,300 Required: (1) Assuming KLM applied overhead based on direct labor hours, calculate the company's predetermined overhead rate for 2016. (2) Assuming KLM applied overhead based on machine hours, calculate the company's predetermined overhead rate for 2016. (3) If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead. (4) If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead
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