Maple Ridge Components Inc. uses a predetermined overhead rate of 120% of direct labor cost. The company estimated total overhead for the year to be $480,000. During the year: Actual direct labor cost = $410,000 • • Actual overhead incurred = $500,000 a) How much overhead was applied during the year? b) Was overhead over applied or under applied, and by how much?

Maple Ridge Components Inc. uses a predetermined overhead rate of 120% of direct labor cost. The company estimated total overhead for the year to be $480,000. During the year: Actual direct labor cost = $410,000 • • Actual overhead incurred = $500,000 a) How much overhead was applied during the year? b) Was overhead over applied or under applied, and by how much?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...

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