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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.
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