Sherrell Inc.runs an IT consulting firm.Sharon Sherrell,the lead partner,insists that the accountants apply overhead using machine hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated machine hours } & 210000 \
\text { Actual machine hours } & 160000 \
\text { Actual overhead } & \$ 790000
\end{array}$

At the end of the year,it was determined that overhead was overapplied by $50 000.
Required:
A. What was the total appled cverhead for the year?
B. What was the predetermined cverhead rate?

Question

Sherrell Inc.runs an IT consulting firm.Sharon Sherrell,the lead partner,insists that the accountants apply overhead using machine hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated machine hours } & 210000 \
\text { Actual machine hours } & 160000 \
\text { Actual overhead } & \$ 790000
\end{array}$
 
At the end of the year,it was determined that overhead was overapplied by $50 000.
Required:
A. What was the total appled cverhead for the year?
B. What was the predetermined cverhead rate?

Quizplus · Accepted Answer

The Answer of Sherrell Inc.runs an IT consulting firm.Sharon Sherrell,the lead partner,insists that the accountants apply overhead using machine hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated machine hours } & 210000 \
\text { Actual machine hours } & 160000 \
\text { Actual overhead } & \$ 790000
\end{array}$
 
At the end of the year,it was determined that overhead was overapplied by $50 000.
Required:
A. What was the total appled cverhead for the year?
B. What was the predetermined cverhead rate?

Sherrell Inc At the End of the Year,it Was Determined That Overhead