Brady Corporation Has Estimated Overhead to Be $250,000 for the Year

question 82

Essay

Brady Corporation has estimated overhead to be $250,000 for the year based on an estimated amount of direct labor hours of 40,000. Actual direct labor hours for the year are 41,500 and actual overhead is $258,900.
Required:
A.) Calculate the predetermined overhead rate.
B.) Calculate how much overhead has been applied.
C.) Calculate the overhead variance.
D.) Assuming that the variance is immaterial, prepare the journal entry to close the variance.

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