The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
$\begin{array}{ll}
\text { Actual overhead } & \$ 47,400 \
\text { Estimated overhead } & \$ 48,300\
\
\text { Actual direct labor hours } & 8,900 \
\text { Estimated direct labor hours } & 9,200
\end{array}$

a. Compute the predetermined overhead rate.
b. Compute overhead applied.
c. Compute over- or underapplied overhead (indicate amount and direction).
d. Indicate whether cost of goods sold should be increased or decreased to adjust the balance to actual costs.

Question

The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
 $\begin{array}{ll}
\text { Actual overhead } & \$ 47,400 \
\text { Estimated overhead } & \$ 48,300\
\
\text { Actual direct labor hours } & 8,900 \
\text { Estimated direct labor hours } & 9,200
\end{array}$
 
a. Compute the predetermined overhead rate.
b. Compute overhead applied.
c. Compute over- or underapplied overhead (indicate amount and direction).
d. Indicate whether cost of goods sold should be increased or decreased to adjust the balance to actual costs.

Quizplus · Accepted Answer

The Answer of The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
 $\begin{array}{ll}
\text { Actual overhead } & \$ 47,400 \
\text { Estimated overhead } & \$ 48,300\
\
\text { Actual direct labor hours } & 8,900 \
\text { Estimated direct labor hours } & 9,200
\end{array}$
 
a. Compute the predetermined overhead rate.
b. Compute overhead applied.
c. Compute over- or underapplied overhead (indicate amount and direction).
d. Indicate whether cost of goods sold should be increased or decreased to adjust the balance to actual costs.

The Following Information Has Been Made Available to You A Compute the Predetermined Overhead Rate