LM Company listed the following data for 2013: Required:
(1) Assuming KLM applied overhead based on direct labor hours, calculate the company's predetermined overhead rate for 2013.
(2) Assuming KLM applied overhead based on machine hours, calculate the company's predetermined overhead rate for 2013.
(3) If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead.
(4) If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead.

Question

LM Company listed the following data for 2013:  Required:
(1) Assuming KLM applied overhead based on direct labor hours, calculate the company's predetermined overhead rate for 2013.
(2) Assuming KLM applied overhead based on machine hours, calculate the company's predetermined overhead rate for 2013.
(3) If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead.
(4) If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead.

Quizplus · Accepted Answer

The Answer of LM Company listed the following data for 2013:  Required:
(1) Assuming KLM applied overhead based on direct labor hours, calculate the company's predetermined overhead rate for 2013.
(2) Assuming KLM applied overhead based on machine hours, calculate the company's predetermined overhead rate for 2013.
(3) If overhead is applied based on direct labor hours, calculate the overapplied/underapplied overhead.
(4) If overhead is applied based on machine hours, calculate the overapplied/underapplied overhead.

LM Company Listed the Following Data for 2013: Required