Sherrell Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated direct labour hours } & 190000 \
\text { Actual direct labour hours } & 130000 \
\text { Actual overhead } & \$ 600000
\end{array}$

At the end of the year,it was determined that overhead was over-applied by $50 000.
Required: A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

Question

Sherrell Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated direct labour hours } & 190000 \
\text { Actual direct labour hours } & 130000 \
\text { Actual overhead } & \$ 600000
\end{array}$
 
At the end of the year,it was determined that overhead was over-applied by $50 000.
Required: A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

Quizplus · Accepted Answer

The Answer of Sherrell Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated direct labour hours } & 190000 \
\text { Actual direct labour hours } & 130000 \
\text { Actual overhead } & \$ 600000
\end{array}$
 
At the end of the year,it was determined that overhead was over-applied by $50 000.
Required: A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

Sherrell Inc At the End of the Year,it Was Determined That Overhead