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Carera Corporation uses a predetermined overhead rate of $23
Carera Corporation uses a predetermined overhead rate of $23.10 per direct labour hour. This predetermined rate was based on 12,000 estimated direct labour-hours and $277,200 of estimated total manufacturing overhead The company incurred actual total manufacturing overhead costs of $296,000 and 12,600 total direct labour Hours during the period Required: 1. Determine the amount of manufacturing overhead applied to units of product during the period as well as the amount of over-or underapplied overhead for the period. Overhead applied Overapplied overhead
Expert Solution
| Actual direct labor hours | 12600 |
| X Predetermined overhead rate | 23.10 |
| Overhead applied | 291060 |
| Actual manufacturing overhead | 296000 |
| Less: Overhead applied | 291060 |
| Underapplied Overhead | 4940 |
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