Data for the past two years for Behavior Corp. are:   20A 20B Units produced 10,000 11,000 Overhead applied per unit P15 P15 Actual overhead:          Fixed 50,000 55,000      Variable 95,000 150,000 Estimated overhead:          Fixed 50,000 56,000      Variable 130,000 142,000 The company determines overhead rates based on estimated units to be produced.   Required: Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B. Determine the over- or underapplied factory overhead for each of the two years.

Principles of Accounting Volume 2
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Chapter4: Job Order Costing
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Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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Data for the past two years for Behavior Corp. are:

  20A 20B
Units produced 10,000 11,000
Overhead applied per unit P15 P15
Actual overhead:    
     Fixed 50,000 55,000
     Variable 95,000 150,000
Estimated overhead:    
     Fixed 50,000 56,000
     Variable 130,000 142,000

The company determines overhead rates based on estimated units to be produced.

 

Required:

  1. Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B.
  2. Determine the over- or underapplied factory overhead for each of the two years.
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