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please answer asap thanks At the beginning of the year, Potatoes Unlimited (PU) estimated the following: Overhead Direct Labour Hours Machine Hours Harvesting Department $310,000
please answer asap thanks
At the beginning of the year, Potatoes Unlimited (PU) estimated the following: Overhead Direct Labour Hours Machine Hours Harvesting Department $310,000 77,500 40,000 Packaging Department $90,000 10,000 60,000 Total $400,000 87,500 100,000 PU uses departmental overhead rates. In the Harvesting Department, overhead is applied on the basis of machine hours. In the Packaging Department, overhead is applied on the basis of direct labour hours. Actual data for the month of August are as follows. Harvesting Department Packaging Department Total Overhead $26,500 $7,750 $34,250 Direct Labour Hours 6,500 840 7,340 Machine Hours 3,400 6,525 9,925 Required: Calculate the predetermined overhead rates for the Harvesting and Packaging Departments, Calculate the overhead applied to production in each department for August. How much as each department's overhead been overapplied or underapplied Step by Step Solution
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