Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours.The following information relates to Brusveen for last year: What was Brusveen's underapplied or overapplied overhead for last year?

Question

Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours.The following information relates to Brusveen for last year:  What was Brusveen's underapplied or overapplied overhead for last year?

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $300,000 ÷ 15,000 direct labor-hours = $20 per direct labor-hour
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Brusveen Corporation Applies Manufacturing Overhead to Jobs on the Basis