Mountain tops applies overhead on the basis of direct labor hours and reports the following information:

Budget Actual

Overhead $$450,000$ $$452,000$

Direct Labor Hours $75,00077,000$

Direct Materials $$195,000$

Direct Labor $333,000$

A$.$ What is the predetermined overhead rate?

B$.$ How much overhead was applied during the year?

C$.$ Was overhead over applied, or under applied and by how much?

Answer rating: 100% (QA)

To solve this problem well follow these steps A Calculate the predetermined overhead rate B Calculat... View the full answer