Factory overhead for the Praeger Company has been estimated as follows: Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate:
a.The predetermined factory overhead rate.
b.The under- or overapplied factory overhead.

Question

Factory overhead for the Praeger Company has been estimated as follows:  Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate: 
a.The predetermined factory overhead rate.
b.The under- or overapplied factory overhead.

Quizplus · Accepted Answer

The Answer of Factory overhead for the Praeger Company has been estimated as follows:  Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate: 
a.The predetermined factory overhead rate.
b.The under- or overapplied factory overhead.

Factory Overhead for the Praeger Company Has Been Estimated as Follows