Crain Company budgeted 35,000 direct labor hours and incurred 40,000 of actual direct labor hours. It estimated overhead of $735,000 and incurred $780,000 of actual overhead.
What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Question

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 of actual direct labor hours. It estimated overhead of $735,000 and incurred $780,000 of actual overhead.​
What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Quizplus · Accepted Answer

The Answer of Crain Company budgeted 35,000 direct labor hours and incurred 40,000 of actual direct labor hours. It estimated overhead of $735,000 and incurred $780,000 of actual overhead.​
What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Crain Company Budgeted 35,000 Direct Labor Hours and Incurred 40,000