Calculate the predetermined overhead rate

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Reference no: EM13141865

Budgeted $ Sales $205,000
Budgeted Machine Hours 10,000
Budgeted Direct Labour Hours 20,000
Budgeted Direct Labour Rate (ph) $14
Budgeted Manufacturing Overhead $364,000
Actual Machine Hours 11,000
Actual Direct Labour Hours 18,000
Actual Direct Labour Rate (ph) $15
Actual Manufacturing Overhead $340,000

Required:

i. Calculate the predetermined overhead rate for the year using each of the following cost drivers:

a) Machine Hours
b) Direct Labour Hours
c) Direct Labour Cost

ii. Calculate whether overhead has been under or overapplied (and by how much) using each of the three cost drivers.

Reference no: EM13141865

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