Question: Ben Whitney manufactures holiday decorations Overhead is applied to products

Ben Whitney manufactures holiday decorations. Overhead is applied to products based on direct labor hours. Last year, total overhead costs were expected to be $85,000. Actual overhead costs totaled $88,750 for 8,400 actual hours. At the end of the year, overhead was underapplied by $4,750.

Required
A. Calculate the predetermined overhead rate.
B. How much overhead should be applied to a job that was completed in three direct labor hours?



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  • CreatedMarch 11, 2015
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