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

question 15

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.

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Definitions:

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