1) A firm estimates next year's total manufacturing overhead at $450,000. Three possible overhead bases being considered are: 40,000 direct labor hours, $350,000 direct labor dollars, and 2,300 machine hours. At the end of the year, the actual amounts were: $460,000 overhead incurred, 41,000 direct labor hours, $340,000 direct labor cost, and 2,600 machine hours.

Required: a) calculate the three overhead rates at the beginning of the year.

b) By using the three different overhead rates, calculate overhead applied by each rate.

c) For each overhead rate, calculate the over or under applied overhead at year end.

  

Answer rating: 100% (QA)

Lets calculate the overhead rates and then the applied overhead for each rate a Calculate the three overhead rates at the beginning of the year 1 Over... View the full answer