Overapplied or underapplied overhead

Reference no: EM1376700

Overapplied or Underapplied overhead

At year-end 2010, Dub's Wind Generator Co. had a $40,000 debit balance in its Manufacturing Overhead Control account. Overhead is applied to products based on direct labor cost. Relevant account balance information at year-end given:
a. Find what predetermined OH rate was used in the year?
___ % of direct labor cost
b. Give arguments to be used for deciding whether to prorate the balance in the overhead account at year-end.
c. Prorate overhead account balance based on relative balances of appropriate accounts.
Work in Process Inventory $ ___
Finished Goods Inventory $ ___
Cost of Goods Sold $ ___
Total $ ___

d. Find some possible reasons that company had a debit balance in overhead account at year-end.

Reference no: EM1376700

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