What is the applied overhead for the company

Reference no: EM132680402

Mccaughan Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. Data for the most recently completed year appear below:

Estimates made at the beginning of the year:

Estimated labor-hours 37,000

Estimated total manufacturing overhead $705,220

At year-end, EasyApp reported the following information for the actual costs incurred during the manufacturing department:

Design wages $245,000
Rent $115,000
Utilities $20,000
Supplies $10,000
Depreciation $220,000

Required:

Problem a. Compute the company's predetermined overhead rate for the recently completed year

Problem b. What's the applied overhead for this company if 38,000 actual direct labor hours incurred?

Problem c. Was the overhead underapplied or overapplied? By how much?

Reference no: EM132680402

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