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Sheridan Company estimates that annual manufacturing overhead costs will be $684,000. Estimated annual operating activity bases are: direct labor cost $524,400, direct labor hours 40,000
Sheridan Company estimates that annual manufacturing overhead costs will be $684,000. Estimated annual operating activity bases are: direct labor cost $524,400, direct labor hours 40,000 and machine hours 80,000 . The actual manufacturing overhead cost for the year was $685,140 and the actual direct labor cost for the year was $519,840. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000 . Sheridan applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over-or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.8. 15.25 and all other answers to 0 decimal places, e.g. 1.525.) Predetermined overhead rate s Manufacturing overhead applied
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