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Please show all work!! Thank you Savings Trust uses bankwide overhead rates to allocate $420,000 of indirect costs. The bankwide rate could be based on
Please show all work!! Thank you
Savings Trust uses bankwide overhead rates to allocate $420,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The following information was gathered for the upcoming period: DLH Loans Processed Direct Costs Department Consumer 800 280,000 16,000 4,000 $ $ Commercial 400 180,000 1. What would be the rate based on direct labor hour? 2. What would be the rate based on number of loans processed? 3. If Savings uses a rate based on direct labor hours, how much overhead will be allocated to the Consumer department? 4. If Savings uses a rate based on number of loans processed, how much overhead will be allocated to the Consumer department. Foster Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $247,500, budgeted machine-hours were 16,500. Actual factory overhead was $267,920, actual machine-hours were 18,500. How much is the over- or underapplied overhead? Be sure to say whether overhead is overapplied or underappliedStep by Step Solution
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