At the Beginning of 2010,Zuir Company's Accounting Department Calculated the Following

question 115

Essay

At the beginning of 2010,Zuir Company's accounting department calculated the following estimates for the coming year's production:
$\begin{array}{lr}\text { Estimated overhead } & \$ 441,600 \\\text { Direct labor hours } & 9,200 \mathrm{hr}\end{array}$

During the year,Zuir Company experienced $440,000 in actual overhead costs and actually worked 9,100 direct labor hours.Zuir applies overhead to production using a predetermined overhead rate based on direct labor hours.
a. Calculate the predetermined overhead rate Zuir uses to apply overhead. (Show your computations.)
b. By what amount was overhead over- or underapplied for 2010? (Show your computations.)
c. Assuming the amount of over- or underapplied overhead is not significant, will the Cost of Goods Sold account be increased or decreased to correct the application of overhead?

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Definitions:

Unary Arithmetic

Operations in mathematics and computer science that operate on a single operand or value to produce a new value.

Cast Operator

In programming, a cast operator converts one data type into another, providing a way to override the automatic data type conversions.

Binary Operator

An operator that works on two operands and performs operations such as addition, subtraction, multiplication, etc.

Rvalue

Rvalue refers to an expression that does not have a memory address and is typically on the right side of an assignment operation.