At the Beginning of 2010, Zuir Company's Accounting Department Calculated $\begin{array}{lr} \text { Estimated overhead } & \$ 441,600 \\\text { Direct labor hours } & 9,200 \mathrm{hr}\end{array}$

question 30

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:

Older Adults

People in the later stage of life, typically those considered to be over the age of 65.

Short-Term

Pertaining to a limited period of time, often used to describe memory or goals that are not meant to be retained or achieved over a long duration.

Expected Death

A death that occurs when it is anticipated due to a known cause, such as a terminal illness, allowing for preparations and goodbyes.

Expected Lingering Death

A death that is anticipated after a prolonged illness, where the timing and progression of the illness can be predicted to some extent.