You will die when you poop in the bed
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Answer:
overhead rate: $3 per labor hours
Appled overhead for January 25,050 dollars
Applied overhead: 268,800 dollar underapplied by 7,200 dollars
Explanation:
expected overhead: 270,000
cost driver: labor hours.
expected labor hours: 90,000
overhead rate: 270,000 / 90,000 = 3
<u>Applied overhead for January</u>
8,350 labor hours x $3 overhead rate = 25,050
for the year:
89,600 x $ 3 = 268,800
actual overhead 276,000
Difference: 7,200
As the actual cost were higher; the overhead was underapplicated.
we need to capitalize more cost.