Asked by Moriah Foster on May 09, 2024
Verified
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $241,800 and 6,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $243,400 and actual direct labor-hours were 5,300.The overhead for the year was: (Round your intermediate calculations to 2 decimal places.)
A) $53,332 underapplied
B) $54,932 underapplied
C) $53,332 overapplied
D) $54,932 overapplied
Manufacturing Overhead
All indirect factory-related costs incurred while producing a product, such as utilities and salaries for management.
Direct Labor-Hours
The total number of hours worked directly on the production of goods, used as a basis for allocating overhead costs in some accounting systems.
- Determine the factual manufacturing overhead and compare these findings with the applied overhead to ascertain the presence of underapplied or overapplied overhead.
Verified Answer
Learning Objectives
- Determine the factual manufacturing overhead and compare these findings with the applied overhead to ascertain the presence of underapplied or overapplied overhead.
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