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Question - Use the following estimates to compute a predetermined overhead rate:
Use only the items required for overhead
Utilities $24,000
Supervision Cost 9,000
Factory Maintenance 6,000
Direct Labor 19,000
Factory Insurance 5,000
Expected machine hours next month will be 5,300 hours.
Required -
A. Calculate predetermined overhead rate.
B. If actual machine hours is 5,100 hours how much manufacturing overhead is to be applied.
C. If actual overhead is $46,000 is overhead underapplied or overapplied, and by how much?
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