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The Following Information Was Gathered for Longview Company for the Year

Question 184

Essay
The following information was gathered for Longview Company for the year ended December 31, 2018:
  
Assume that direct labor-hours are the cost-allocation base.
Required:
a.Compute the budgeted factory overhead rate.
b.Compute the factory overhead applied.
c.Compute the amount of over/underapplied overhead.

The following information was gathered for Longview Company for the year ended December 31, 2018:
The following information was gathered for Longview Company for the year ended December 31, 2018:     Assume that direct labor-hours are the cost-allocation base. Required: a.Compute the budgeted factory overhead rate. b.Compute the factory overhead applied. c.Compute the amount of over/underapplied overhead.
Assume that direct labor-hours are the cost-allocation base.
Required:
a.Compute the budgeted factory overhead rate.
b.Compute the factory overhead applied.
c.Compute the amount of over/underapplied overhead.

Correct Answer:

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a.$600,000/75,000 hrs. = $8.00...

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