Question
Answer : c. Department D 22600 Underapplied Department E 12000 Overapplied Department K 55620 Underapplied Calculation Applied overhead: Department D: Direct labour cost *
Answer : c. Department D 22600 Underapplied Department E 12000 Overapplied Department K 55620 Underapplied Calculation Applied overhead: Department D: Direct labour cost * Predetermined overhead cost = 180000 * 70% = 126000 Department E: Direct labour hour * Predetermined overhead rate = 16500 * 12 = 198000 Department K : Machine hour * Predetermined overhead rate =10480 * 6 = 62880 Underapplied/Overapplied overhead = Applied overhead Incurred overhead Department D: 126000 148500 = 22600 Underapplied Department E: 198000 - 186000 = 12000 Overapplied Department K: 62880 - 118500 = 55620 Underapplied
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