E3-2A

EXERCISES- SET A E3-1A. Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting Inc., follow: Estimated consulting overhead cost for the year..... . . . . $270,000 Estimated direct labor cost for the year (@$9/hr.).... . . . . . ...180,000 Actual manufacturing overhead cost for January .. .. . . . . . .. 16,000 Actual direct labor cost for January (1,200 hours). . . . . . . . . . . . . . . . 11,000 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. b. Prepare a journal entry that applies consulting overhead for January c. By what amount is consulting overhead over- or underapplied in January? Calculate and Use Overhead Rate Using the data in Exercise 3-1A, but assuming that the basisfo applying consulting overhead is direct labor hours, complete requirements (a) through (c). E3-2A