Data available for the year:

Budgeted factory overhead $675,000
Actual factory overhead $ 726,000
Budgeted direct-labor costs $ 450,000
Actual diret-labor costs $ 482,000

End of year balances:

Materials Inventory $ 120,000
WIP inventory $ 100,000
Cost of Goods sold $ 150,000
Finished goods inventory $ 250,000

What is the applied overhead based on direct-labor costs?

Prorate the overhead variance to the appropriate accounts.

Overhead rate = estimated overhead costs/estimated activity base

(Activity base can be things like machine hours, direct labor hours, direct labor dollars. The problem always tells you what to use.)

Applied overhead = rate from above x actual activity base.

Please make an attempt to do your own work, and then we can help you.

Quote:

---

Originally Posted by morgaine300

Overhead rate = estimated overhead costs/estimated activity base

(Activity base can be things like machine hours, direct labor hours, direct labor dollars. The problem always tells you what to use.)

Applied overhead = rate from above x actual activity base.

Please make an attempt to do your own work, and then we can help you.

---

Thank you for your information to get this problem resolved and I didn't know where to begin to answer this question and believe me I have attempted to do this problem.

Thanks!

723000

723000

higity, the thread is 2 years old & I'm closing it.

We also do not just provide answers to people's homework for them. Please read the guidelines we have about homework:
https://www.askmehelpdesk.com/financ...-b-u-font.html