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Yang Company Applies Overhead at a Rate of $26 Per

Question 134

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Yang Company applies overhead at a rate of $26 per direct labor hour. Budgeted labor hours were 25,000; actual labor hours exceeded the budget by 1,600 hours. Overhead was overapplied by $3,758.
Required:
(a) Compute the budgeted overhead for the year.
(b) Compute actual overhead for the year.

Correct Answer:

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(a)25,000 hrs × $26/hr = $650,...

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