Question: Question 6 (Chapter 5): Brookcette expected their overhead expenses to total $900 with 125 direct labour hours. At the end of 2019, Brookcette incurred $1325

Question 6 (Chapter 5): Brookcette expected their overhead expenses to total $900 with 125 direct labour hours. At the end of 2019, Brookcette incurred $1325 in overhead expenses with 145 direct labour hours.

  1. Using direct labour hours as an allocation base, calculate Brookcettes predetermined manufacturing overhead rate for 2019
  2. Using direct labour hours as an allocation base, calculate Brookcettes actual manufacturing overhead rate for 2019.
  3. Compare the predetermined overhead rate and actual overhead rate for 2019. Did Brookcette overallocate or underallocate manufacturing overhead?

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