Triangle Catering assigns overhead to specific jobs based on direct labor hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated direct labor hours were 40,000. By the end of the year, actual overhead costs were calculated to be $525,000 and actual direct hours were 45,000. A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a particular catering job that required 15 direct labor hours? C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Triangle Catering assigns overhead to specific jobs based on direct labor hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated direct labor hours were 40,000. By the end of the year, actual overhead costs were calculated to be $525,000 and actual direct hours were 45,000. A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a particular catering job that required 15 direct labor hours? C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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