A company applies overhead at a rate of 150% of direct labor cost. Actual overhead cost...

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A company applies overhead at a rate of 150% of direct labor cost. Actual overhead cost for the current period is $1,200,000,

business accounting

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Answer 1

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--Requirement, as asked

Factory Overhead
Actual Overhead	$1,200,000	$847,500	Overhead applied ($565000 x 150%)
		$352,500	Under Applied Overhead [$ 1200000 - 847500]

	$1,200,000	$1,200,000

--factory Overhead is debited by actual overheads, and is credited by Applied overhead amount.

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Answer 2

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