Question
Hipster Company applies overhead based on direct labor hours. At the beginning of the year January 1, Hipster estimates Overhead cost to be $450,000 and
Hipster Company applies overhead based on direct labor hours. At the beginning of the year January 1, Hipster estimates Overhead cost to be $450,000 and Direct Labor hours to be 90,000. During January, Jones has 6,700 actual direct labor hours.
31. Refer to Figure 5-1
What is the predetermined overhead rate?
| a. | $6 per direct labor hour |
| b. | $5 per direct labor hour |
| c. | $4 per machine hour |
| d. | $44,000 |
| e. | none of these |
32. Refer to Figure 5-1. What is the amount of overhead applied for January?
| a. | $40,200 |
| b. | $66,000 |
| c. | $44,000 |
| d. | $33,500 |
| e. | $480,000 |
33. Refer to Figure 5-1. If the actual overhead for January is $41,000, what is the overhead variance and is it overapplied or underapplied?
| a. | $800 underapplied |
| b. | $800 overapplied |
| c. | $7,500 underapplied |
| d. | $3,000 overapplied |
| e. | none of these |
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