During 2022, Crane Company incurred the following direct labor costs: January $16,400 and February $24,600. Crane...

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During 2022, Crane Company incurred the following direct labor costs: January $16,400 and February $24,600. Crane uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $15,990 and $29,274. Actual overhead for the 2 months, respectively, totaled $20,500 and $27,470. Calculate overhead applied. January GA $ $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. February January February EA $ $ EA During 2022, Crane Company incurred the following direct labor costs: January $16,400 and February $24,600. Crane uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $15,990 and $29,274. Actual overhead for the 2 months, respectively, totaled $20,500 and $27,470. Calculate overhead applied. January GA $ $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. February January February EA $ $ EA

Answer rating: 100% (QA)

1 Calculate the overhead applied using the predetermined overhead rate 120 of d... View the full answer