Xbin Incorporated estimated overhead to be $440,000 and direct labour hours to be 100,000 for the year. Actual direct labour ended up being 120,000 hours. Actual overhead for the year amounted for $500,000.
A. Calculate the predetermined overhead rate.
B. Calculate the applied overhead for the year.
C. Calculate the amount of under- or over-applied overhead at the end of the year.

Question

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The Answer of Xbin Incorporated estimated overhead to be $440,000 and direct labour hours to be 100,000 for the year. Actual direct labour ended up being 120,000 hours. Actual overhead for the year amounted for $500,000.
A. Calculate the predetermined overhead rate.
B. Calculate the applied overhead for the year.
C. Calculate the amount of under- or over-applied overhead at the end of the year.

Xbin Incorporated Estimated Overhead to Be $440,000 and Direct Labour