Maximus Catering Allocates Costs to Client Catering Assignments Based on Direct

question 42

Essay

Maximus Catering allocates costs to client catering assignments based on direct labour hours.Estimated overhead costs were $750 000 and estimated direct labour hours were 60 000 for the upcoming year.At year's end,it was noted that actual overhead costs were $700 000 and actual direct labour hours were 55 000.
Required:
A. Calculate the predetermined wverhead rate.
B. How much dverhead wauld be applied to a catering as5igmnent that req?uired 12 direct labour hours?
C. How much total cverhead was applied during the year?
D. By how much was averhead aver- or underagplied for the year? Be sure to indicate whether it was cver- or underagplied.