Isabelle Pty Ltd uses a budgeted factory overhead rate to apply overhead to production.The following data are available for the year ended 31 December 2018.
$\begin{array}{lll}
&\text {Budgeted}&\text {Actual}\
\text { Factory overhead } & \$ 675000 & \$ 716000 \
\text { Direct labour costs } & \$ 450000 & \$ 432000 \
\text { Direct labour-hours } & 12500 \mathrm{dlh} & 13325 \mathrm{dlh}
\end{array}$

Required:
a.Determine the budgeted factory overhead rate based on direct labour-hours.
b.What is the applied overhead based on direct labour-hours?
c.Is overhead overapplied or underapplied? Explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Question

Isabelle Pty Ltd uses a budgeted factory overhead rate to apply overhead to production.The following data are available for the year ended 31 December 2018.
 $\begin{array}{lll}
&\text {Budgeted}&\text {Actual}\ 
\text { Factory overhead } & \$ 675000 & \$ 716000 \
\text { Direct labour costs } & \$ 450000 & \$ 432000 \
\text { Direct labour-hours } & 12500 \mathrm{dlh} & 13325 \mathrm{dlh}
\end{array}$
 
Required:
a.Determine the budgeted factory overhead rate based on direct labour-hours.
b.What is the applied overhead based on direct labour-hours?
c.Is overhead overapplied or underapplied? Explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of Isabelle Pty Ltd uses a budgeted factory overhead rate to apply overhead to production.The following data are available for the year ended 31 December 2018.
 $\begin{array}{lll}
&\text {Budgeted}&\text {Actual}\ 
\text { Factory overhead } & \$ 675000 & \$ 716000 \
\text { Direct labour costs } & \$ 450000 & \$ 432000 \
\text { Direct labour-hours } & 12500 \mathrm{dlh} & 13325 \mathrm{dlh}
\end{array}$
 
Required:
a.Determine the budgeted factory overhead rate based on direct labour-hours.
b.What is the applied overhead based on direct labour-hours?
c.Is overhead overapplied or underapplied? Explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Isabelle Pty Ltd Uses a Budgeted Factory Overhead Rate to Apply