1-Speedy Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year:

Budgeted Actual

Overhead cost $2,200,000 $2,100,000

Computer hours 100,000 90,000

Direct labor hours 200,000 180,000

Overhead is applied on the basis of computer hours.

Instructions

a. Compute the predetermined overhead rate.

b. Determine the amount of overhead applied for the year.

Answer:?

2-Bark Manufacturing has three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $80,000, $162,500, and $28,000, respectively. The expected annual use in each department is 1,000 setups, 12,500 machine hours, and 875 inspections.

Instructions

Compute the overhead rate for each activity.

Answer: ?