Question
At the beginning of the year Grey Corporation estimated the following: Assembly Department Packaging Department Overhead $ Direct labor hours Machine hours 840,000 $
At the beginning of the year Grey Corporation estimated the following: Assembly Department Packaging Department Overhead $ Direct labor hours Machine hours 840,000 $ 80,000 20,000 210,000 4,000 12,000 Grey uses departmental overhead rates. In the assembly department, overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department Packaging Department Overhead Direct labor hours Machine hours Required: $ 42,759 $ 4,000 20,400 300 1,000 1,200 A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied.
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