Party Organiser Ltd

question 30

Essay

Party Organiser Ltd.allocates overheads to individual parties based on labour hours.At the beginning of the current year,estimated overhead costs were $3 000 000 and estimated labour hours were 1 200 000.By the end of the year,actual overhead costs were calculated to be $2 600 000 and actual labour hours were 1 050 000.
Required:
A Calculate the predetermined qverhead rate.
B. How much averhead wadd be applied to a particular job that required 200 labour hours?
C. How much total averhead was agplied during the year?
D. By how much was averhead aver- ar underapplied far the year? Be sure to indicate whether it was aver- or underagglied.

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Definitions:

Investment Account

An account held at a financial institution or brokerage that holds assets like stocks, bonds, mutual funds, and other investments.

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.

Outstanding Shares

The total number of shares of stock that are currently held by all shareholders, including share blocks held by institutional investors and restricted shares.

Beginning of the Year Balance

The amount of money or value of an account at the start of a fiscal year before any transactions have been accounted for.