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tester [92]
3 years ago
12

Budgeted Actual Overhead cost $909,000 $884,000 Machine hours 55,000 46,000 Direct labor hours 101,000 98,000 Overhead is applie

d on the basis of direct labor hours. (a) Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
Business
1 answer:
LiRa [457]3 years ago
3 0

Answer:

Missing word <em>"(b) Determine the amount of overhead applied for the year?"</em>

<em />

1. Predetermined overhead rate = Budgeted overhead / Budgeted direct labor hours

Predetermined overhead rate = $909,000 / 101,000

Predetermined overhead rate = $9 per DLH

2. Overhead applied = Actual hours * Overhead rate

Overhead applied = 98,000 * $9 per DLH

Overhead applied = $882,000

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