Minimus Cleaning Allocates Costs to Client Catering Assignments Based on Cleaning

question 43

Essay

Minimus Cleaning allocates costs to client catering assignments based on cleaning machine hours.Estimated overhead costs were $900 000 and estimated direct labour hours were 50 000 for the upcoming year.At year's end,it was noted that actual overhead costs were $800 000 and actual direct labour hours were 40 000.
Required:
A. Calculate the predetermined wverhead rate.
B. How much dverhead wauld be applied to a catering as5igmnent that req?uired 23 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 over- or underagplied.

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