METROTECH INDUSTRIES HAS A PREDETERMINED OVERHEAD RATE OF 162% OF DIRECT LABOR COST. ESTIMATED OVERHEAD FOR THE PERIOD WAS $410,000. THE ACTUAL COST FOR DIRECT LABOR WAS $289,000, AND THE ACTUAL OVERHEAD WAS $463,000. • • HOW MUCH OVERHEAD WAS APPLIED? HOW MUCH WAS OVER- OR UNDER-APPLIED OVERHEAD?
METROTECH INDUSTRIES HAS A PREDETERMINED OVERHEAD RATE OF 162% OF DIRECT LABOR COST. ESTIMATED OVERHEAD FOR THE PERIOD WAS $410,000. THE ACTUAL COST FOR DIRECT LABOR WAS $289,000, AND THE ACTUAL OVERHEAD WAS $463,000. • • HOW MUCH OVERHEAD WAS APPLIED? HOW MUCH WAS OVER- OR UNDER-APPLIED OVERHEAD?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...
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Transcribed Image Text:METROTECH INDUSTRIES HAS A PREDETERMINED OVERHEAD
RATE OF 162% OF DIRECT LABOR COST. ESTIMATED OVERHEAD
FOR THE PERIOD WAS $410,000. THE ACTUAL COST FOR DIRECT
LABOR WAS $289,000, AND THE ACTUAL OVERHEAD WAS
$463,000.
•
•
HOW MUCH OVERHEAD WAS APPLIED?
HOW MUCH WAS OVER- OR UNDER-APPLIED OVERHEAD?
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