Question: Speedy Shoe Factory manufactures running shoes Overhead is applied to

Speedy Shoe Factory manufactures running shoes. Overhead is applied to the shoes based on direct labor hours. Last year, total overhead costs were expected to be $72,000. Actual overhead costs totaled $80,000 for 8,000 actual hours. At the end of the year, overhead was underapplied by $5,000.

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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