Carla Vista Company estimates that annual manufacturing overhead costs will be $708,000. Estimated annual operating activity bases are: direct labor cost $542,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $709,180 and the actual direct labor cost for the year was $538,080. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Carla Vista applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 1,525.) Predetermined overhead rate Manufacturing overhead applied per direct labor hour
Carla Vista Company estimates that annual manufacturing overhead costs will be $708,000. Estimated annual operating activity bases are: direct labor cost $542,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $709,180 and the actual direct labor cost for the year was $538,080. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Carla Vista applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 1,525.) Predetermined overhead rate Manufacturing overhead applied per direct labor hour
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Carla Vista Company estimates that annual manufacturing overhead costs will be $708,000. Estimated annual operating activity bases
are: direct labor cost $542,800, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the
year was $709,180 and the actual direct labor cost for the year was $538,080. Actual direct labor hours totaled 39,800 and machine
hours totaled 79,000. Carla Vista applies overhead based on direct labor hours.
Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is
over- or underapplied and the amount. (Round predetermined overhead rate to 2 decimal places, e.g. 15.25 and all other
answers to 0 decimal places, e.g. 1,525.)
Predetermined overhead rate
Manufacturing overhead applied $
per direct labor hour
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