Question
A company uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the predetermined overhead rate (POHR) was calculated to be
A company uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the predetermined overhead rate (POHR) was calculated to be $22 per direct labor hour based on an estimated 11,500 direct labor hours for the year.
At the end of the year, actual direct labor-hours for the year were 11,130 hours and the actualmanufacturing overhead costs incurred during the year were $252,480.
Based on this information, compute the amount of underapplied or overapplied manufacturing overhead and also indicate in your answer whether it is underapplied or overapplied.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started