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. What is the predetermined overhead rate?
B. What is the applied overhead for the year?
C. What is the amount of under-or over-applied overhead at the end of the year?

Question

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. What is the predetermined overhead rate?
B. What is the applied overhead for the year?
C. What is the amount of under-or over-applied overhead at the end of the year?

Quizplus · Accepted Answer

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. What is the predetermined overhead rate?
B. What is the applied overhead for the year?
C. What is 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