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3-3B - Predetermined Overhead Rate, Overapplied and Underapplied Overhead Jakes Autobody is a car repair shop. The company u
3.4A - Journal Entries of Job Order Costing Intercity Roofing manufactures and installs custom shingles for use on damaged ro
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Answer #1

3-3B
a. Predetermined Overhead rate = $140000 / 20000 = $7 per hour

b. Overhead applied = 18000 x $7 = $126000

c. Since overhead applied is lower than actual overhead, overhead is under applied
Under applied overhead = $150000 - $126000 = $24000

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