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Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following bases in the three
Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following bases in the three companies: Required: 1. Compute the predetermined overhead rate to be used in each company during the upcoming year. (Round your answers to 2 decimal places.) 2-a. Assume that company A works on three jobs during the upcoming year, Direct labour-hours recorded by job are as follows: job 418,21,000 hours; job 419,35,000 hours; job 420,10,500 hours. How much overhead cost will the company apply to work in process for the year? (Do not round intermediate calculations.) 2-b. If actual overhead costs total $450,000 for the year, will overhead be under- or overapplied? By how much? (Do not round intermediate calculations.)
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