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enot [183]
2 years ago
13

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th

e company based its predetermined overhead rate on total estimated overhead of $242,400 and 7,400 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $243,800 and actual direct labor-hours were 5,500.The overhead for the year was_____________.
Business
1 answer:
kramer2 years ago
8 0

Answer:

Under applied to the extent of $ 63,620

Explanation:

We have to compute the predetermined overhead rate on direct labor hours.

Estimated overhead                                                            $ 242,400

Estimated direct labor hours                                                  7400 hours

Predetermined overhead rate on direct labour hours       $ 32.76 per hour

Applied overhead based on actual direct labor hours

5,500 labor hours * $ 32.76 per hour  =                              $ 180,180

Actual manufacturing overhead                                           <u>$ 243,800</u>

Underapplied overhead                                                       $  63,620                        

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When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 1%) on a...
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