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Page of 12 3 Bonnet Company is consider Company is considering using a predetermined overhead rate based on capacity instead of estimated units produced ne

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Page of 12 3 Bonnet Company is consider Company is considering using a predetermined overhead rate based on capacity instead of estimated units produced ne capacity of the factory is 150.000 units (without excessive overtime. The estimated c o vered that evel of production is 214.000 mennet used the capacity-based predetermined to apply ma turing overdos calculate the veronder applied overhead cost for the fiesta Additional information for the first quarter Manufacturing overhead, actual Number of units produced, actual 130.000 Under the capacity method, the allocated overhead cost would be A Underapplied by 531200 Overapplied by S31300 C Underapplied by 512300 D. Overapplied by 512300 E None of the above 4 For its first year of operations, Darcy Company estimated manufacturing overhead (MOH) would be S108,000, and the company chose to apply MOH using a predetermined overhead rate based on estimated direct labor hours (DLR). For the year, debits to its Work in Process account totaled 5550,000 and credits totaled $480,000. While management estimated that employees would work 18,000 DLHs, business was stronger than expected and actual DLHs totaled 20,000 hours. Darcy's ending work in process inventory consisted of one job, Job 42. The job had been charged with $29,000 of direct- labor cost, which consisted of 2,000 actual DLHs. The direct materials cost in Job 42 totaled: B A S 39,000 S 28.000 C $ 29,000 D $ 32,000 E None of the above Page 3 of 12

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