Stacey Quilts manufactures high value,custom-made quilts.The company assigns overhead to specific jobs based on direct labour costs.At the beginning of the current year,estimated overhead costs were $2 500 000 and estimated DL costs was 2 000 000.By the end of the year,actual overhead costs were calculated to be $1 900 000 and actual DL costs was 1 800 000.
Required:
A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular job that required $ \$ 250 $ in DL costs?
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

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The Answer of Stacey Quilts manufactures high value,custom-made quilts.The company assigns overhead to specific jobs based on direct labour costs.At the beginning of the current year,estimated overhead costs were $2 500 000 and estimated DL costs was 2 000 000.By the end of the year,actual overhead costs were calculated to be $1 900 000 and actual DL costs was 1 800 000.
Required:
A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular job that required $ \$ 250 $ in DL costs?
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.

Stacey Quilts Manufactures High Value,custom-Made Quilts $250 \$ 250 $250 In DL Costs? C

Stacey Quilts Manufactures High Value,custom-Made Quilts $\$ 250$ In DL Costs?
C