Question
Richards Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours.
Richards Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours. Actual overhead for the year amounted to $500,000.
| A. | What is the predetermined overhead rate? |
| B. | What is the applied overhead for the year? |
| C. | What is the amount of under- or over-applied overhead at the end of the year? |
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Edi Audit And Control
Authors: I. Walden, A. Braganza
3rd Edition
1855542080, 978-1855542082
