Determine the amount of overhead that would be applied

Reference no: EM131962055

Problem

Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Variable overhead cost per direct labor-hour	$4.50
Total fixed overhead cost per year	$490,455
Budgeted standard direct labor-hours (denominator level of activity)	75,455
Actual direct labor-hours	84,000
Standard direct labor-hours allowed for the actual output	82,000

Required:

1. Compute the predetermined overhead rate for the year.
2. Determine the amount of overhead that would be applied to the output of the period.

Reference no: EM131962055

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