Klinger Company estimates that annual manufacturing overhead costs will be $3,600,000 for 2010. The actual overhead costs at the end of 2010 are $3,740,000. Activity base information for 2010 follows:
Instructions
(a) Compute the predetermined overhead rate for each activity base.
(b) Compute the amount of overhead applied in 2010 for each activity base.
(c) Compute the amount of under- or overapplied overhead for 2010 for each activity base.

Question

Klinger Company estimates that annual manufacturing overhead costs will be $3,600,000 for 2010. The actual overhead costs at the end of 2010 are $3,740,000. Activity base information for 2010 follows:  
Instructions
(a) Compute the predetermined overhead rate for each activity base.
(b) Compute the amount of overhead applied in 2010 for each activity base.
(c) Compute the amount of under- or overapplied overhead for 2010 for each activity base.

Quizplus · Accepted Answer

The Answer of Klinger Company estimates that annual manufacturing overhead costs will be $3,600,000 for 2010. The actual overhead costs at the end of 2010 are $3,740,000. Activity base information for 2010 follows:  
Instructions
(a) Compute the predetermined overhead rate for each activity base.
(b) Compute the amount of overhead applied in 2010 for each activity base.
(c) Compute the amount of under- or overapplied overhead for 2010 for each activity base.

Klinger Company Estimates That Annual Manufacturing Overhead Costs Will Be