Question
Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of
Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of total manufacturing overhead for an estimated activity level of 12,600 direct labor-hours. |
The company incurred actual total manufacturing overhead costs of $233,000 and 12,100 total direct labor-hours during the period. |
Required: | |||
1. | Determine the amount of underapplied or overapplied manufacturing overhead for the period.
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