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-   -   Calculate the amount of overapplied or underapplied overhead (https://www.askmehelpdesk.com/showthread.php?t=476931)

  • Jun 6, 2010, 09:56 AM
    tamimi
    Calculate the amount of overapplied or underapplied overhead
    Applying overhead
    The following information is provided:

    Estimated manufacturing overhead $690,000
    Estimated machine hours 46,000
    Actual machine hours worked 50,000

    Actual costs incurred:
    Indirect materials $170,000
    Indirect labor 230,000
    Utilities 120,000
    Insurance 100,000
    Rent 80,000

    Calculate the amount of overapplied or underapplied overhead
  • Jun 7, 2010, 03:48 AM
    morgaine300

    Please see the guidelines for posting homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
  • Jul 9, 2011, 04:05 PM
    avrila556
    Applied OH= $50000*150(predetermined OH rate)
    Applied OH= $750000
    Predertimined OH rate= $690000/46000

    Actual OH= Indirect materials $170,000+Indirect labor 230,000+Utilities 120,000+Insurance 100,000+Rent 80,000
    Actual OH= $700000

    Over-applied/Under-applied OH= $700000 Actual OH - $750000 Applied OH
    Over-applied OH= $50000

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