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Calculating Factory Overhead Estimated Direct Labor Hours 125,000 Estimated Direct Labor Dollars $5,454,545 Estimated Factory Overhead $3,000,000 Actual Direct Labor Hours 200,000 Actual Direct Labor

Calculating Factory Overhead

Estimated Direct Labor Hours 125,000
Estimated Direct Labor Dollars $5,454,545
Estimated Factory Overhead $3,000,000
Actual Direct Labor Hours 200,000
Actual Direct Labor Dollars $6,500,000
Actual Factory Overhead Costs $2,800,000

The company's applies overhead to products based on Direct Labor Dollar:

A) Calculate the predetermined factory overhead rate based on Direct Labor Dollars.

B) Use the predetermined overhead rate to apply overhead to products.

C) Calculate the over/underapplied overhead

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