Ask Question
26 February, 14:16

EA3.

LO 6.1A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?

+4
Answers (1)
  1. 26 February, 14:33
    0
    Predetermined overhead rate=$8 per hour

    Applied overheads=$799,200

    Explanation:

    Predetermined overhead rate is calculated using the following formula:

    Predetermined overhead rate=Estimated overhead/Estimated direct labor hours

    Predetermined overhead rate=800,000/100,000

    =$8 per hour

    Applied overheads = Predetermined overhead rate*number of direct labor hours

    Applied overheads=8*99,900

    =$799,200
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “EA3. LO 6.1A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers