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

question 156

Essay

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

mL

A metric unit of volume equal to one thousandth of a liter, commonly used for measuring liquids in medicine.

mg

An abbreviation for milligram, a unit of mass equal to one thousandth of a gram.

mL

Milliliter, a metric unit of volume equal to one thousandth of a liter.

Drug Concentration

The amount of drug present in a given volume or mass of solution or tissue, impacting its effectiveness and safety.