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A company uses direct labor hours to determine its predetermined overhead rate .At the beginning of the year, the estimated direct labor hours were 115,700
A company uses direct labor hours to determine its predetermined overhead rate .At the beginning of the year, the estimated direct labor hours were 115,700 hours, and the estimated overhead was $3,471,000, resulting in a predetermined overhead rate of $30 per direct labor hour. The following actual information was available at the end of the year: Depreciation on factory equipment $2,000,000 Chief financial officer salary $90,000 Indirect materials $100,000 Factory electricity $750,000 Direct labor $300,000 Direct material $235,000 Rent on administrative offices $100,000 Rent on factory building $561,000 Acutal direct laobr hours 116,700 What is the amount of the underapplied or overapplied overhead? 10,000 underapplied 30,000 overapplied 90,000 overapplied 190,000 overapplied 100,000 underapplied
| A company uses direct labor hours to determine its predetermined overhead rate .At the beginning of the | ||||||||||
| year, the estimated direct labor hours were 115,700 hours, and the estimated overhead was $3,471,000, | ||||||||||
| resulting in a predetermined overhead rate of $30 per direct labor hour. | ||||||||||
| The following actual information was available at the end of the year: | ||||||||||
| Depreciation on factory equipment | $2,000,000 | |||||||||
| Chief financial officer salary | $90,000 | |||||||||
| Indirect materials | $100,000 | |||||||||
| Factory electricity | $750,000 | |||||||||
| Direct labor | $300,000 | |||||||||
| Direct material | $235,000 | |||||||||
| Rent on administrative offices | $100,000 | |||||||||
| Rent on factory building | $561,000 | |||||||||
| Acutal direct laobr hours | 116,700 | |||||||||
| What is the amount of the underapplied or overapplied overhead? | ||||||||||
| 10,000 underapplied | ||||||||||
| 30,000 overapplied | ||||||||||
| 90,000 overapplied | ||||||||||
| 190,000 overapplied | ||||||||||
| 100,000 underapplied | ||||||||||
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Educational Foundations
Authors: Leslie Kaplan, James D Stice, William Owings
2nd Edition
1285968298, 9781285968292
