Question: Bahubali LTD allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance

Bahubali LTD allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods inventories. The following estimates were included in the budget for the current year

Total Projected $ 300,000

Total projected direct labour hours $ 40,000

During January, the firm worked on the following productions jobs;

Kattapa J : 1,600 hours

Devsena X : 2, 400 direct labour hours

Sivagami K : 1,000 direct labour hours

Actual overhead incurred by Bahubali LTD amounted to $ 30,000.

Question 1. Calculate the the company's predetermined overhead rate for the year.

Question 2. How much manufacturing overhead was applied to production?

Question 3 . Calculate and journalize the overapplied or underapplied overhead

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