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

question 17

Essay

Sherrell Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
$\begin{array}{lr}\text { Estimated direct labour hours } & 190000 \\\text { Actual direct labour hours } & 130000 \\\text { Actual overhead } & \$ 600000\end{array}$

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

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Definitions:

Undesirable

A characteristic or condition deemed negative, unwanted, or harmful in a particular context.

Subjective

Based on or influenced by personal feelings, tastes, or opinions.

Objective Bases

The foundation or criteria that are independently verifiable and not influenced by personal feelings or opinions.

Work Setting

Refers to the physical and social environment in which individuals perform their job tasks.