Need help My Company has a predetermined overheadrate of 150% of direct labor cost. Estimatedoverhead for the period was $300,000. Theactual cost for direct labor was $225,000 andthe actual overhead was $335,000.How much overhead was applied? How muchwas over-or under-applied overhead?

Actual overhead cost is lower than applied overhead cost, hence overhead is overapplied.

Answered: My Company has a predetermined overhead…

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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My Company has a predetermined overhead rate of 150% of direct labor cost. Estimated overhead for the period was $300,000. The actual cost for direct labor was $225,000 and the actual overhead was $335,000. How much overhead was applied? How much was over-or under-applied overhead?