The company I work for uses direct labor hours as the base to allocate manufacturing overhead. Fox made the following estimates for the coming year: manufacturing overhead cost, $60,000; direct labor hours: 6,000.
If the actual result for the year are: manufacturing overhead cost, $65,000; direct labor hours: 7,000,
Will overhead be underapplied or overapplied, and by how much?© BrainMass Inc. brainmass.com June 3, 2020, 6:36 pm ad1c9bdddf
We first find the predetermined overhead rate. The predetermined ...
The solution explains how to calculate the applied overhead and whether it is under or over applied.