Question
KLM Company listed the following data for 2017: Budgeted factory overhead $2,015,800 Actual factory overhead 2,125,900 Budgeted direct labor hours 195,000 Budgeted machine hours 86,875
KLM Company listed the following data for 2017:
Budgeted factory overhead $2,015,800
Actual factory overhead 2,125,900
Budgeted direct labor hours 195,000
Budgeted machine hours 86,875
Actual machine hours 91,500
Actual direct labor hours 189,600
(a) Assuming KLM applied overhead based on direct labor hours; calculate the company's predetermined overhead rate for 2017
(b) Assuming KLM applied overhead based on machine hours; calculate the company's predetermined overhead rate for 2017
(c) If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead.
(d) If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead.
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