Factory overhead for the Praeger Company has been estimated as follows: Fixed overhead $122,500 Variable overhead $90,000 Budgeted direct labor hours 42,500 Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000. Calculate: a. The predetermined factory overhead rate. b. The under- or overapplied factory overhead.
Factory overhead for the Praeger Company has been estimated as follows: Fixed overhead $122,500 Variable overhead $90,000 Budgeted direct labor hours 42,500 Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000. Calculate: a. The predetermined factory overhead rate. b. The under- or overapplied factory overhead.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Factory
Fixed overhead |
$122,500 |
Variable overhead |
$90,000 |
|
|
Budgeted direct labor hours |
42,500 |
Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.
Calculate:
a. |
The predetermined factory overhead rate. |
b. |
The under- or overapplied factory overhead. |
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