The Hamilton Company planned to produce 150,000 units during the current year.At that production volume,the company estimated that its overhead costs would amount to $637,500.
Required:
1)Calculate the predetermined overhead rate per unit based on expected production.
2)Assume that actual output totaled only 145,000 units but the actual overhead cost incurred was $637,500,as expected.How much overhead cost was allocated to work in process? By how much was overhead overapplied or underapplied during the period? (Be sure to indicate whether over- or underapplied.)
3)Assume that actual output totaled 150,000 units,as expected,but actual overhead costs amounted to $600,000.How much overhead cost was allocated to work in process? By how much was overhead overapplied or underapplied during the period? (Be sure to indicate whether over- or underapplied.)
4)Summarize the conditions that lead to over- or underapplied overhead.

Question

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The Answer of The Hamilton Company planned to produce 150,000 units during the current year.At that production volume,the company estimated that its overhead costs would amount to $637,500.
Required:
1)Calculate the predetermined overhead rate per unit based on expected production.
2)Assume that actual output totaled only 145,000 units but the actual overhead cost incurred was $637,500,as expected.How much overhead cost was allocated to work in process? By how much was overhead overapplied or underapplied during the period? (Be sure to indicate whether over- or underapplied.)
3)Assume that actual output totaled 150,000 units,as expected,but actual overhead costs amounted to $600,000.How much overhead cost was allocated to work in process? By how much was overhead overapplied or underapplied during the period? (Be sure to indicate whether over- or underapplied.)
4)Summarize the conditions that lead to over- or underapplied overhead.

The Hamilton Company Planned to Produce 150,000 Units During the Current