The Following Information Has Been Made Available to You A Compute the Predetermined Overhead Rate

question 107

Essay

The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
$\begin{array}{lr}\text { Estimated overhead } & \$ 1,638,000 \\\text { Estimated direct labor hours } & 390,000 \\\text { Actual direct labor hours } & 442,000 \\\text { Actual overhead } & \$ 1,862,000\end{array}$

a. Compute the predetermined overhead rate.
b. Compute the amount of applied overhead for the year.
c. Compute the amount of underapplied or overapplied overhead.

---

Definitions:

Utilitarians

Philosophers or adherents of the ethical theory known as utilitarianism, which evaluates the morality of actions based on their outcomes or utility in maximizing happiness or well-being.

Criminal Penalties

Sanctions imposed by a court following a criminal conviction, which may include imprisonment, fines, probation, or other penalties.

Socially Undesirable Behavior

Actions or conduct by individuals or groups that are considered harmful or offensive according to societal norms and values.

Equal Protection Clause

A part of the Fourteenth Amendment to the U.S. Constitution requiring states to treat all its citizens equally under the law.