The total of MOH costs, $521,000 was siginificantly exceeding the budgeted MOH of $443,880. In the past at the beginning of the year, Daniel budgeted DL hours for 137,000 for his workers but when reviewing the records, they were actually working 152,000 hours receiving a wage of $15 per hour. Based on the information, detemine the budgeted MOH rate based on the DL hours, apply MOH for the year and determine the under or overapplied MOH for the year. Budgeted MOH rate___/DL hr Applied MOH ___ Difference_____ was it over or under or neither?

At the end of the construction year for his business, Jose's uncle Daniel is having trouble dealing with the company's indirect costs as there are just so many of them! To help his uncle (and because he hopes to take over the family business one day), Jose listed a few examples of what he thought would be indirect costs for this company: glue, nails, staples, drywall compound, and tape. Daniel then added supervisor costs, as well as depreciation of the construction trucks, generators, saws, and other equipment, to the list. Unfortunately, the total of these MOH costs, $521,000, significantly exceeded Daniel's budgeted MOH of $443,880. In the past, Daniel assigned MOH costs to individual jobs based on the direct labor hours of his employees. At the beginning of the year, based on the work he had planned and still hoped to earn at that time, Daniel budgeted for 137,000 DL hours. In reviewing the payroll records of his employees, Daniel now sees that they actually worked 152,000 hours this year while receiving an average wage of $15 per hour. Wow, business must be good! (a) (b) Your answer is incorrect. Based on the above information, determine the budgeted MOH rate based on DL hours, apply MOH for the year, and determine under- or overapplied MOH for the year. (Round MOH rate answer to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ /DL hour Applied MOH Difference $