Triangle Catering assigns overhead to specific jobs based on direct labour hours.At the beginning of the current year,estimated overhead costs were $500 000 and estimated direct labour hours were 40 000.By the end of the year,actual overhead costs were calculated to be $525 000 and actual direct labour hours were 45 000.
Required:
A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular catering job that required 15 direct labour hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Question

Triangle Catering assigns overhead to specific jobs based on direct labour hours.At the beginning of the current year,estimated overhead costs were $500 000 and estimated direct labour hours were 40 000.By the end of the year,actual overhead costs were calculated to be $525 000 and actual direct labour hours were 45 000.
Required:
 A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular catering job that required 15 direct labour hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Quizplus · Accepted Answer

The Answer of Triangle Catering assigns overhead to specific jobs based on direct labour hours.At the beginning of the current year,estimated overhead costs were $500 000 and estimated direct labour hours were 40 000.By the end of the year,actual overhead costs were calculated to be $525 000 and actual direct labour hours were 45 000.
Required:
 A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular catering job that required 15 direct labour hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Triangle Catering Assigns Overhead to Specific Jobs Based on Direct