Westfield Manufacturing forecasts that total overhead for the current year will be $12,450,000 with 150,000 total direct labor hours. Year to date, the actual overhead is $5,760,000, and the actual direct labor hours are 64,000 hours. If Westfield Manufacturing uses a predetermined overhead rate based on direct labor hours for applying overhead, as of this point in time (year to date), the overhead is: a. $240,000 overapplied b. $448,000 underapplied c. $320,000 overapplied d. $320,000 underapplied

Westfield Manufacturing forecasts that total overhead for the current year will be $12,450,000 with 150,000 total direct labor hours. Year to date, the actual overhead is $5,760,000, and the actual direct labor hours are 64,000 hours. If Westfield Manufacturing uses a predetermined overhead rate based on direct labor hours for applying overhead, as of this point in time (year to date), the overhead is: a. $240,000 overapplied b. $448,000 underapplied c. $320,000 overapplied d. $320,000 underapplied

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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