Question

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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