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Compute the amount of under- or overapplied overhead

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Reference no: EM133004867

Simco Company estimates that annual manufacturing overhead costs will be $2,400,000 for 2020. The actual overhead costs at the end of 2020 are $2,490,000. Activity base information for 2020 follows:

Activity Base                   Estimated                      Actual
Direct Labor Cost           $1,150,000                $1,575,000
Direct Labor Hours              100,000               106,000
Machine Hours                 75,000                    76,000

Instructions

Problem (a) Compute the predetermined overhead rate for each activity base.

Problem (b) Compute the amount of overhead applied in 2020 for each activity base.

Problem (c) Compute the amount of under- or overapplied overhead for 2020 for each activity base.

Reference no: EM133004867

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