Northface Company Applies Overhead Based Upon Labor-Hours

question 81

Essay

Northface Company applies overhead based upon labor-hours. Budgeted factory overhead was $910,000 and budgeted labor-hours were 32,500. Actual factory overhead was $893,675 and actual labor-hours were 31,560.
Required:
a. Compute the overhead application rate.
b. Compute the amount of overhead applied to production.
c. Determine the amount of over- or underapplied overhead.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price point.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price level.

Blu-Ray Discs

Blu-ray discs are high-density optical discs used for storing large amounts of data, including high-definition video and audio.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price.