Triangle Catering Assigns Overhead to Specific Jobs Based on Direct

question 5

Essay

Triangle Catering assigns overhead to specific jobs based on direct labour hours.At the beginning of the current year,estimated overhead costs were $500 000 and estimated direct labour hours were 40 000.By the end of the year,actual overhead costs were calculated to be $525 000 and actual direct labour hours were 45 000.
Required:
A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular catering job that required 15 direct labour hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

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Definitions:

Mental Shortcuts

Cognitive strategies that simplify decision making by reducing the amount of information processed.

Cognitive Misers

A theory suggesting that humans, in an effort to conserve mental energy, prefer to rely on simple and efficient thought processes rather than engaging in more effortful and complex reasoning.

Judgements

Judgements are opinions or decisions formed after considering facts and evidence, often involving the evaluation of information to draw conclusions.

Emotional Relating

The process of connecting with others through emotions, empathizing with their feelings, and expressing one's emotional state.