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Estimated cost and operating data for three companies for the upcoming year follow: Direct labour-hours Machine-hours Direct materials cost Manufacturing overhead cost 94,000 47.000 $
Estimated cost and operating data for three companies for the upcoming year follow: Direct labour-hours Machine-hours Direct materials cost Manufacturing overhead cost 94,000 47.000 $ 470,000 Company B 47,000 94,000 $ 329,000 $ 460,600 70,500 23,500 $ 352,500 $1,198,500 $ 587,519 Predetermined overhead rates are computed using the following bases in the three companies: Company A B Overhead Rate Based on Direct labour-hours Machine-hours Direct materials cost Required: 1. Compute the predetermined overhead rate to be used in each company during the upcoming year. (Round your answers to 2 decimal places.) Company B Predetermined Overhead Rate per DLH per MH % of DMC 2-a. Assume that company A works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: Job 418,28,200 hours: Job 419, 47,000 hours: job 420, 14,100 hours. How much overhead cost will the company apply to work in process for the year? (Do not round intermediate calculations.) Overhead cost applied 2-b. If actual overhead costs total $603,000 for the year, will overhead be under-or overapplied? By how much? (Do not round intermediate calculations.) overhead cost
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