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    huggins's Avatar
    huggins Posts: 1, Reputation: 1
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    #1

    Sep 13, 2009, 02:47 PM
    What is the predetermined overhead rat based on machine-hours to apply to manfacturin
    If I use a predetermined overhead rate based on dirct labor hours to apply manfacturing overhead to jobs. My estimated manfacturing overs cost was $300,000 based on an estimated activity level of 100,000 direct labor our. Actual overhead amounted to $325,000 with actual direct labor hours totaling 110,000 for the month. How much was the overapplied or underapplied overhead
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 13, 2009, 08:31 PM

    You need a rate first which is:



    Once you have that rate, it's used to apply the overhead. You apply it based on the actual level of the activity base. Then you can compare the applied overhead calculated to the actual overhead costs given.
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