chue inc. uses a normal costing system in which factory overhead is applied based on direct labor
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Budget $ 150,000 210,000 Direct materials used Direct labor $ $ 472,500 Factory overhead a. Calculate the predetermined factory overhead rate. b. Calculate the amount of applied overhead. Actual $ 160,000 $ 240,000 $ 480,000 Calculate the amount of overhead under or over applied and specify whether the overhead amounts is "under-applied" or "ove.-applied". d. Based on your analysis above, are direct labor costs a good cost driver for overhead costs? Explain your answer. Budget $ 150,000 210,000 Direct materials used Direct labor $ $ 472,500 Factory overhead a. Calculate the predetermined factory overhead rate. b. Calculate the amount of applied overhead. Actual $ 160,000 $ 240,000 $ 480,000 Calculate the amount of overhead under or over applied and specify whether the overhead amounts is "under-applied" or "ove.-applied". d. Based on your analysis above, are direct labor costs a good cost driver for overhead costs? Explain your answer.
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a The predetermined factory overhead rate can be calculated as follows Predetermined factory overhead rate Estimated total overhead costs Estimated ac... View the full answer
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