At the beginning of the year Grey Corporation estimated the following:
Grey uses departmental overhead rates. In the assembly department , overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows:
Required:
A.) Calculate the predetermined overhead rate for the assembly and packaging departments.
B.) Calculate the overhead applied to production in each department for the month of April.
C.) Calculate how much each department's overhead is overapplied/underapplied.

Question

At the beginning of the year Grey Corporation estimated the following:
  Grey uses departmental overhead rates. In the assembly department , overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows:
  Required:
A.) Calculate the predetermined overhead rate for the assembly and packaging departments.
B.) Calculate the overhead applied to production in each department for the month of April.
C.) Calculate how much each department's overhead is overapplied/underapplied.

Quizplus · Accepted Answer

The Answer of At the beginning of the year Grey Corporation estimated the following:
  Grey uses departmental overhead rates. In the assembly department , overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows:
  Required:
A.) Calculate the predetermined overhead rate for the assembly and packaging departments.
B.) Calculate the overhead applied to production in each department for the month of April.
C.) Calculate how much each department's overhead is overapplied/underapplied.

At the Beginning of the Year Grey Corporation Estimated the Following