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The following data pertain to the Aquarius Hotel Supply Company for the year just ended.
Budgeted sales revenue $945,000Budgeted manufacturing overhead 650,000Budgeted machine hours (based on practical capacity) 20,000Budgeted direct-labor hours (based on practical capacity) 25,000Budgeted direct-labor rate per hour 13Actual manufacturing overhead 690,000Actual machine hours 22,000Actual direct-labor hours 26,000Actual direct-labor rate per hour 14
Required:
1. Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars.
2. Calculate the overapplied or underapplied overhead for the year using each of the cost drivers listed above.
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