Question

CengageNOW2OX + cenow.com/ ig g endorf ock Predetermined Overhead Rate, Overhead Application At the beginning of the year, tberg Company estimated the following costs Overhead 416,000 Direct labor cost 520,000 Tiberg uses nomal costing and colles overhead on the basis of direct labor cost (Direct labor cost is equal to total direct labor hours worked mured by the wage rate) for the month of December, director cost was 43,200 Required: 1. Calculate the predetermined overhead rate for the e of direct labore nter the percentages 2. Calculate the overhead pied to production in December Check My Work Previous Next > work seret. Som s te besigner o e MacBook Pro SÅ IT F

Answer 1

Answer 1 Calculation of the pre determined overhead rate Budgeted overhead Budgeted labor cost $416,000 520,000 Pre determined overhead rate Budgeted overhead Budgeted labor cost $416,000 520,000 80% Answer 2 Actual Direct labor cost $43,700 Overhead applied in productio 80% of 43700 $34,960