Reference no: EM133098784

Question - At the beginning of the year, Han Company estimated the following:

Overhead $582,400

Direct labor hours 80,000

Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 6,950. By the end of the year, Han showed the following actual amounts:

Overhead $613,320

Direct labor hours 84,100

Assume that unadjusted Cost of Goods Sold for Han was $927,000.

Required -

1. Calculate the determined overhead rate for Han. Round your answer to the nearest cent.

2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.)

3. Calculate the total applied overhead for the year. Was overhead over- or underapplied? By how much?

4. Calculate adjusted cost of goods sold after adjusting for the overhead variance.