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Northface Company Applies Overhead Based Upon Labor-Hours

question 81

Essay

Northface Company applies overhead based upon labor-hours. Budgeted factory overhead was $910,000 and budgeted labor-hours were 32,500. Actual factory overhead was $893,675 and actual labor-hours were 31,560.
Required:
a. Compute the overhead application rate.
b. Compute the amount of overhead applied to production.
c. Determine the amount of over- or underapplied overhead.

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Definitions:

Motors

Machines that convert electrical energy into mechanical energy, commonly used for driving machinery.

Three-Phase Motor

An electric motor designed to operate on a three-phase alternating current supply, providing high efficiency and a smooth flow of power.

Lines

Refers to conductors that carry electrical power from one location to another, often used in the context of power transmission and distribution networks.

Consequent Pole Motor

A type of electric motor that achieves higher torque by varying the relationships between magnetic poles.

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