**Predetermined Overhead (OH) Rate**Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The predetermined overhead rate is 250 percent of the direct labor cost. During the first three months of the current year, actual costs incurred were as follows:| Direct Labor Cost | Actual Overhead ||-------------------|-----------------|| January | $72,000 | $176,000 || February | $66,000 | $168,160 || March | $68,000 | $168,400 |a. **What amount of overhead was applied to production in each of the three months?**Applied OH Table:| Month | Applied OH ||----------|------------|| January | $0 || February | $0 || March | $0 |b. **What was the underapplied or overapplied overhead for each of the three months and for the first quarter?**Under/Overapplied OH Table:| Month | Amount ||-----------------|---------|| January | $0 || February | $0 || March | $0 || Total for Quarter| $0 |**Note:** Do not use a negative sign with your answer.---**Explanation:**- The table labeled "Direct Labor Cost & Actual Overhead" shows the costs for direct labor and the actual overhead incurred for January, February, and March.- The "Applied OH" table indicates the applied overhead for each month, which needs to be calculated based on the predetermined rate.- The "Underapplied or Overapplied OH" table is to determine any differences between the actual overhead and the applied overhead for each month and the entire quarter. To solve this, multiply the direct labor costs by the overhead rate (250%) to find the applied overhead, then compare it to the actual overhead to see if there’s any underapplied or overapplied overhead.

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Description: **Predetermined Overhead (OH) Rate**Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The predetermined overhead rate is 250 percent of the direct labor cost. During the first three months of the

Overhead costs is one of the indirect costs being incurred in manufacturing and business. These…

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Predetermined OH rate Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The rate is 250 percent o months of the current year, actual costs incurred were as follows: Direct Labor Cost Actual Overhead January $72,000 $176,000 February 66,000 March 68,000 a. What amount of overhead was applied to production in each of the three months? Applied OH 0 0 0 January $ February March January February March Total for Quarter $ 0 0 0 0 168,160 168,400 4) b. What was the underapplied or overapplied overhead for each of the three months and for the first quarter? Note: Do not use a negative sign with your answer.

Predetermined OH rate Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The rate is 250 percent o months of the current year, actual costs incurred were as follows: Direct Labor Cost Actual Overhead January $72,000 $176,000 February 66,000 March 68,000 a. What amount of overhead was applied to production in each of the three months? Applied OH 0 0 0 January $ February March January February March Total for Quarter $ 0 0 0 0 168,160 168,400 4) b. What was the underapplied or overapplied overhead for each of the three months and for the first quarter? Note: Do not use a negative sign with your answer.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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**Predetermined Overhead (OH) Rate**

Langston Automotive Accessories applies overhead using a combined rate for fixed and variable overhead. The predetermined overhead rate is 250 percent of the direct labor cost. During the first three months of the current year, actual costs incurred were as follows:

| Direct Labor Cost | Actual Overhead |
|-------------------|-----------------|
| January | $72,000 | $176,000 |
| February | $66,000 | $168,160 |
| March | $68,000 | $168,400 |

a. **What amount of overhead was applied to production in each of the three months?**

Applied OH Table:

| Month | Applied OH |
|----------|------------|
| January | $0 |
| February | $0 |
| March | $0 |

b. **What was the underapplied or overapplied overhead for each of the three months and for the first quarter?**

Under/Overapplied OH Table:

| Month | Amount |
|-----------------|---------|
| January | $0 |
| February | $0 |
| March | $0 |
| Total for Quarter| $0 |

**Note:** Do not use a negative sign with your answer.

---

**Explanation:**

- The table labeled "Direct Labor Cost & Actual Overhead" shows the costs for direct labor and the actual overhead incurred for January, February, and March.
- The "Applied OH" table indicates the applied overhead for each month, which needs to be calculated based on the predetermined rate.
- The "Underapplied or Overapplied OH" table is to determine any differences between the actual overhead and the applied overhead for each month and the entire quarter.

To solve this, multiply the direct labor costs by the overhead rate (250%) to find the applied overhead, then compare it to the actual overhead to see if there’s any underapplied or overapplied overhead.

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