Question

QUESTION 12 The predetermined overhead rate is based on the relationship between estimated annual costs and actual activity estimated annual costs and estimated annual activity actual monthly costs and actual annual activity estimated monthly costs and actual monthly activity QUESTION 13 During 2017, Cotte Manufacturing expected Job No 59 to cost $300,000 of overhead, 5500,000 of materials, and $200,000 in labor Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $295.000 5570.000 in materials used and $220.000 in laboral of the goods were completed How much is the amount of over or underapplied over for this job? $5,000 underapplied $5,000 overapplied $35,000 underapplied 535,000 overapplied

Answer 1

SOLUTION : 12
	Predetermined overhead rate = Estimated annual costs / Estimated annual activity
	Answer = Option 2 = Estimated annual cost and estimated annual activity
SOLUTION : 13
	Estimated overhead expenses	$               3,00,000
	Actual overhead expenses	$               2,95,000
	IT means actual overhead expeses are lower by $ 5,000 as per estimted
	and this menas overhead is underapplie dby $ 5,000
	Answer = Option 1 = $ 5,000 Underapplied