Ahmed Company has a predetermined overhead rate of 80% of direct labor cost. During May, Ahmed...

 

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Ahmed Company has a predetermined overhead rate of 80% of direct labor cost. During May, Ahmed incurred $64,000 of factory labor costs, of which $62,000 is direct labor and $2,000 is indirect. Actual overhead incurred was $52,900. 1. What is the amount of manufacturing overhead applied during May? $ 2. What is the amount of under- or overapplied overhead? $ 3. Is overhead underapplied or overapplied? Ahmed Company has a predetermined overhead rate of 80% of direct labor cost. During May, Ahmed incurred $64,000 of factory labor costs, of which $62,000 is direct labor and $2,000 is indirect. Actual overhead incurred was $52,900. 1. What is the amount of manufacturing overhead applied during May? $ 2. What is the amount of under- or overapplied overhead? $ 3. Is overhead underapplied or overapplied?

Answer rating: 100% (QA)

Answer Lets calculate each part step by step 1 Amount of Manufacturing Overhead Applied Manufacturin... View the full answer