Question

both questions plz

Under job order costing, the predetermined overhead rate equals: Estimated overhead divided by the number of months in the period Actual overhead divided by actual direct labor hours Actual overhead minus estimated overhead Actual overhead multiplied by the actual activity level for a period Estimated overhead divided by the estimated activity level for a period D la 2 19 Under job order costing, the overhead variance is underapplied if: actual overhead is less than applied overhead O estimated overhead is less than applied overhead the predetermined overhead rate is greater than the actual overhead rate actual overhead is greater than applied overhead None of the above

Answer 1

Overheads are expenses incurred by the business for its day to day operations.They are not directly related to creation of a product.

1) Under job order costing, the predetermined overhead rate equals :

Estimated overhead divided by the estimated activity level for a period

Predetermined overheads are calculated inorder to know how products are performing even before the end of an accounting period. It evaluates the profitability of business.

2) Under job order costing, the overhead variance is underapplied if :

Actual overhead is greater than applied overhead

Underapplied overhead is an unfavourable variance because the business utilizes more the the budgets.

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