Sweet Acacia Company uses a standard cost system. Indirect costs were budgeted at $195,700 plus $13...

 

Transcribed Image Text:

Sweet Acacia Company uses a standard cost system. Indirect costs were budgeted at $195,700 plus $13 per direct labour hour. The overhead rate is based on 10,300 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead 8,690 10,300 $185,900 $180,200 Calculate the over- or underapplied overhead. Sweet Acacia Company uses a standard cost system. Indirect costs were budgeted at $195,700 plus $13 per direct labour hour. The overhead rate is based on 10,300 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead 8,690 10,300 $185,900 $180,200 Calculate the over- or underapplied overhead.

Answer rating: 100% (QA)

To calculate the overapplied overhead we need to compare the actual overhead incurred ... View the full answer