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:

Therapeutic Community

A structured, treatment-based environment where individuals support each other in recovering from addiction or mental health issues through community living and shared experiences.

Alcohol Abuse

The excessive and harmful consumption of alcohol, leading to negative impacts on an individual's health, social relationships, and responsibilities.

Drug Abuse

The compulsive and harmful use of drugs for non-medical purposes, leading to addiction and other negative outcomes.

Outpatient Mental Health Clinic

A healthcare facility offering mental health services to individuals who visit for appointments but do not require overnight hospitalization.