Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per direct labor hour. Use the following information to determine by how much the manufacturing overhead...


Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per direct labor hour. Use the following information to determine by how much the manufacturing overhead cost for the current year will be over or under applied.<br>Direct labor-hours:<br>Estimated for the year<br>25,000<br>Actual hours worked<br>25,600<br>Direct labor cost:<br>Estimated for the year<br>$300,000<br>Actual cost incurred<br>$210,000<br>Manufacturing overhead:<br>Estimated for the year<br>$250,000<br>Actual cost incurred<br>$252,000<br>The manufacturing overhead cost for the current year will be:<br>O $6,000 under applied<br>O $6,000 over applied<br>O $4,000 over applied<br>O $4,000 under applied<br>

Extracted text: Your Company uses a predetermined overhead rate based on direct labor hours. The POR is $10 per direct labor hour. Use the following information to determine by how much the manufacturing overhead cost for the current year will be over or under applied. Direct labor-hours: Estimated for the year 25,000 Actual hours worked 25,600 Direct labor cost: Estimated for the year $300,000 Actual cost incurred $210,000 Manufacturing overhead: Estimated for the year $250,000 Actual cost incurred $252,000 The manufacturing overhead cost for the current year will be: O $6,000 under applied O $6,000 over applied O $4,000 over applied O $4,000 under applied

Jun 01, 2022
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