Question

26&7 Instructions heip Question 37 (of 38) Save & Ext Submt Time remaining: 052 27 Note: This question will not be automatically graded It will be sent to your instructor for review alue 000 points land Corporation applies overhead based upon machine-hours. Budgeted factory averhead was $375,000 and budgeted machine-hours were 12,500. Actual factory overhead was $387920 and actu nachine-hours were 13.150 Required: Compute the overhead application rate . Compute the amount of overhead applied to production Determine the amount of over- or underapplied overhead BIU Path 7:08 AM 6/11/2019 Type here to search

Answer 1

a. Computation of overhead application rate:-
	Overhead application rate =	Budgeted Factory overheads			=	$375,000	=	$30.00	per machine hour
		Budgeted machine hours				12500

b. Computation of amount of overhead applied to production:-
a	Actual machine hours	13150
b	Overhead application rate	$                                   30.00	per machine hour
c	Overhead applied(a*b)	$                               394,500
c. Computation of amount of over- or under applied overhead :-
a	Actual Overhead	$                               387,920
b	Overhead applied	$                               394,500
c	Over-applied Overhead (b-a)	$ 6,580

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