Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate.
In April, Sykora incurred actual overhead costs of $1,050,000 and used 30,000 hours. How much was Sykora's over- or under-applied overhead for the month of April?

Question

Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate. 
In April, Sykora incurred actual overhead costs of $1,050,000 and used 30,000 hours. How much was Sykora's over- or under-applied overhead for the month of April?

Quizplus · Accepted Answer

The Answer of Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate. 
In April, Sykora incurred actual overhead costs of $1,050,000 and used 30,000 hours. How much was Sykora's over- or under-applied overhead for the month of April?