Sherrell Inc At the End of the Year,it Was Determined That Overhead

question 10

Essay

Sherrell Inc.runs an IT consulting firm.Sharon Sherrell,the lead partner,insists that the accountants apply overhead using machine hours.The following data are available for the year:
$\begin{array}{lr}\text { Estimated machine hours } & 210000 \\\text { Actual machine hours } & 160000 \\\text { Actual overhead } & \$ 790000\end{array}$

At the end of the year,it was determined that overhead was overapplied by $50 000.
Required:
A. What was the total appled cverhead for the year?
B. What was the predetermined cverhead rate?

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Definitions:

Per Thousand

A term used to denote rates or quantities calculated per thousand units.

Annual Payments

Regular payments made once a year, often as part of a financial agreement or obligation.

Medical Bills

Documents or statements that detail charges for medical services and treatments provided to a patient.

Endowment Policy

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.