Estimated Direct Labor Hours: 530,000
Estimated Direct Labor Dollars: $1,250,000
Estimated Factory Overhead Costs: $874,500
Actual Direct Labor Hours: 565,000
Actual Direct Labor Dollars: $1,375,000
Actual Factory Overhead Costs: $980,000
The company applies overhead to products based on Direct Labor Hours.
A) Calculate the predetermined Factory overhead rate based on Direct Labor Hours.
B) Use the predetermined overhead rate to apply overhead to products.
C) Calculate the over/underapplied overhead.
T accounts