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The following data pertain to the Aquarius Hotel Supply Company for the year just ended. Budgeted sales revenue.................................................................$945,000 Budgeted manufacturing overhead............................................... 650,000 Budgeted machine hours

The following data pertain to the Aquarius Hotel Supply Company for the year just ended.

Budgeted sales revenue.................................................................$945,000

Budgeted manufacturing overhead............................................... 650,000

Budgeted machine hours (based on practical capacity)................ 20,000

Budgeted direct-labor hours (based on practical capacity)........... 25,000

Budgeted direct-labor rate per hour.............................................. 13

Actual manufacturing overhead.................................................... 690,000

Actual machine hours.................................................................... 22,000

Actual direct-labor hours............................................................... 26,000

Actual direct-labor rate per hour................................................... 14


Required:

1. Compute the firm’s predetermined overhead rate for the year using each of the following common cost drivers:

(a) Machine hours,

(b) Direct-labor hours,

(c) Direct-labor dollars.

2. Calculate the overapplied or underapplied overhead for the year using each of the cost drivers listed above.


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