Question

Amy Corporation, which applies manufacturing overhead on the basis of direct labor hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated direct labor hours Actual manufacturing overhead Actual direct labor hours $80,080 1,100 $76,800 1,060 The estimates of the manufacturing overhead and of direct labor hours were made at the beginning of the year. The applied manufacturing overhead for the year is closest to Multiple Choke $75,089 0 $77,168 576.800 $76.450

Answer 1

Question 1

Correct answer-----------$77,168

Working

(A)	Estimated Manufacturing Overheads	$ 80,080
(B)	Estimated Direct labor hour	1,100
C= (A/B)	Predetermined Overhead rate	$            72.80
(D)	ActualDirect labor hour	1,060
E=(DxC)	Overheads Applied	77,168

Question 2

Correct answer-----------Overapplied by $ 6,400

Working

(A)	Estimated Manufacturing Overheads	$ 120,800
(B)	Estimated Direct labor hour	15,100
C= (A/B)	Predetermined Overhead rate	$               8.00
(D)	ActualDirect labor hour	16,200
E=(DxC)	Overheads Applied	129,600
(F)	Actual Overheads	$ 123,200
G=(F-E)	Overheads Overapplied	$ 6,400