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Eberlin Boats estimates the following for 2016: Manufacturing overhead $ 480,000 Direct labor hours 48,000 Machine hours 100,000 During 2016 Eberlin incurs the following costs
Eberlin Boats estimates the following for 2016:
Manufacturing overhead | $ | 480,000 | |
Direct labor hours | 48,000 | ||
Machine hours | 100,000 | ||
During 2016 Eberlin incurs the following costs and activity:
Manufacturing overhead | $ | 508,000 | |
Direct labor hours | 52,000 | ||
Machine hours | 108,000 | ||
Eberlin uses direct labor hours to calculate the predetermined overhead rate for the year. (a.) Calculate the predetermined overhead rate for 2016. (b.) Calculate the applied overhead for 2016. (c.) Calculate the amount of overapplied or underapplied overhead for 2016.
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