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

question 164

Essay

The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
$\begin{array}{ll}\text { Actual overhead } & \$ 47,400 \\\text { Estimated overhead } & \$ 48,300 \\& \\\text { Actual direct labor hours } & 8,900 \\\text { Estimated direct labor hours } & 9,200\end{array}$

a. Compute the predetermined overhead rate.
b. Compute overhead applied.
c. Compute over- or underapplied overhead (indicate amount and direction).
d. Indicate whether cost of goods sold should be increased or decreased to adjust the balance to actual costs.

---

Definitions:

Grin

A broad smile indicating amusement, happiness, or satisfaction.

Standards

Established norms, criteria, or requirements that specify the expected levels of quality or performance.

Punctuation

The use of symbols in writing that separate sentences and their elements, clarifying meaning.

Apostrophe

A punctuation mark used to indicate possession or the omission of letters.