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Carera Corporation uses a predetermined overhead rate of $23

Accounting Nov 05, 2020

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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