Q$1-$

Warner Inc. sells a high$-$speed retrieval system for mining information. It provides the following information for the year.

$\backslash$table$[[,$Budgeted,Actual$],[$Overhead Cost,$1,579,000,955,790],[$Machine Hours,$55,790,45,790],[$Direct Labor Hours,$157,900,95,790]]$

Overhead is applied on the basis of Direct Labor Hours.

$($a$)$ Compute the Predetermined Overhead Rate.

$($b$)$ Determine the amount of overhead applied for the year.

$($c$)$ Explain how an Activity$-$Based Costing System might differ in terms of computing a Predetermined Overhead Rate.

Answer$-$

ACCT$212-$Mod$02-$Ch$02,3$ & $4$ Classwork $02-$ Page $35$ of $60$