Silver Spoon Catering assigns overhead to specific jobs based on direct labor hours. At the beginning of the current year, estimated overhead costs were $600,000 and estimated direct labor hours were 50,000 hours. By the end of the year, actual overhead costs were $615,000 and actual direct labor hours were 55,000 hours. A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a catering job that direct hours? required 20 labor C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year?

Silver Spoon Catering assigns overhead to specific jobs based on direct labor hours. At the beginning of the current year, estimated overhead costs were $600,000 and estimated direct labor hours were 50,000 hours. By the end of the year, actual overhead costs were $615,000 and actual direct labor hours were 55,000 hours. A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a catering job that direct hours? required 20 labor C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...

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